Donor-advised funds: why would I use one over just writing checks?

retired_in_2019 · 11/6/2024

Appreciated stock is the whole answer for me — deduct fair market value, skip the capital gain, grant out over several years. But the sponsor choice matters more than people think. Advisor-managed vs. big-box sponsor changes fees, custody, and what assets you can even contribute.

6 replies

Bunching. We put 3 years of giving into a DAF in one high income year, itemized once, then granted out slowly. That is basically the whole pitch.
FIRE_at_52 · 11/7/2024
Okay that makes sense. Does the charity know it came from me or does it show up anonymous?
retired_in_2019 · 11/7/2024
Your choice on each grant. Most people put their name on it.
FIRE_at_52 · 11/7/2024
The bigger one for us was giving appreciated stock instead of cash. Skipped the gain entirely and deducted the full value.
mtn_bike_mom · 11/9/2024
so its a tax shelter with a halo
HODLberto · 11/13/2024
It is irrevocable. Once it goes in, it can only go to charity, ever. That is not much of a shelter.
TaxGuyTom · 11/13/2024