Five Potential Tax Benefits
When you make a contribution to iGiftFund, an IRS-recognized public charity, you’re entitled to the most favorable charitable tax deductions available. Any deduction that you’ll receive depends on the asset type and your personal situation.
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.
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.
Your donor advised fund will not be subject to estate taxes.
Your investment in a donor advised fund is allowed to appreciate tax-free.
If you are subject to AMT, contributions to your donor advised fund will reduce your AMT liability.
1. 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.
2. 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.
3. Estate Tax
Your donor advised fund will not be subject to estate taxes.
4. Tax-free Growth
Your investment in a donor advised fund is allowed to appreciate tax-free.
5. Alternative Minimum Tax (AMT)
If you are subject to AMT, contributions to your donor advised fund will reduce your AMT liability.
Tax Eligibility
You are eligible for an itemized income tax deduction on the date that you irrevocably gift your asset to iGiftFund. Any deduction that you receive will depend on the type of asset that you contribute and your personal financial circumstances. Rules and regulations regarding tax deductions for charitable giving vary by state. Additional tax rules and regulations may apply, and you should always consult a tax or legal advisor before making a charitable contribution to your fund. (This guide addresses only federal taxes.)
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.
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