Tax Benefits & Considerations
The iGiftFund is an IRS-recognized public charity. When you make a contribution to your iGiftFund, you are entitled to the most favorable charitable tax deductions available. Any deduction that you receive will depend on the asset type and your personal situation.
Six Potential Tax Benefits
Income Tax: You will receive an immediate and maximum income tax deduction in the year that you contribute to your donor-advised fund, subject to the following adjusted gross income (AGI) limits:
- IRS deduction limitation for cash – up to 60% of AGI
- IRS deduction limitation for securities and other appreciated assets – up to 30% of AGI
Note: Unused deductions may be carried forward for up to an additional 5 years.
Capital gains tax: Contributions of appreciated assets, such as stocks and real estate, incur no capital gains tax. Contributions are valued at the fair market value.
In contrast to private foundations, the deduction for contributions of assets other than cash and marketable securities is limited to the cost basis. (For more information, please see our Donor Advised Fund vs. Private Foundation Comparison.)
Estate tax: Your donor-advised fund will not be subject to estate taxes.
Tax-free growth: Your investment in a donor-advised fund is allowed to appreciate tax-free.
Alternative minimum tax (AMT): If you are subject to AMT, contributions to your donor-advised fund will reduce your AMT liability.
Simplify the Tax Reporting Function
iGiftFund makes it easy to manage your charitable giving:
- Contribute once and support many. No more year-end pressures.
- Get one tax receipt and support your favorite charities when it’s convenient.
- All contributions are accessible in one place in the iGiftFund DonorView Portal.
- Confirmation for each iGiftFund contribution is provided for tax purposes. (No more looking for lost tax receipts!)
Note: This information is provided for informational purposes only, and should not be interpreted as legal and/or tax advice. Donors should always consult their legal and tax advisors regarding their specific situations.