How can a donor advised fund help you save on taxes?

You can add money to a donor advised fund in high-income years and receive immediate tax benefits without having to decide your donations that same year. This helps you maximize deductions in years that would have a higher tax bill.

How do you manage a donor advised fund?

Managing a DAF primarily involves deciding when, how, and to whom your contributions are distributed:

1. First, you’ll need to establish your fund with a sponsoring organization that handles the administrative responsibilities. 
2. Once your DAF is set up, you can begin contributing cash, securities, or other assets, which may qualify for an immediate tax deduction.  
3. Lastly, you can recommend grants to qualified charities at your discretion, making it a flexible tool for both immediate and long-term charitable giving.

Get help setting up your Donor Advised Fund to maximize your tax write-offs and choose the positive impact your money will make.

Harsin Advanced Tax Planning has decades of experience helping clients set up DAFs and using them for smart tax decisions.