A resident of Las Vegas, Nevada, Rich Kruithoff has served as the president of Charitable Planning Services since 2016. In this role, he helps clients in 10 states develop tax planning strategies that minimize tax liability and optimize charitable giving. Rich Kruithoff has also given presentations on donor-advised fund tax strategies in charitable giving.
A donor-advised fund (DAF) allows Americans to deposit money into a fund over time and receive tax deductions for their contributions. While a sponsoring organization manages the funds, the donor recommends which charitable organization should receive the donation. The donor also recommends how to invest assets in the account.
A DAF offers immediate income tax deductions since the donor can claim a deduction in the year of contribution, not the year the charity receives the money. For example, if a donor makes a $100,000 donation, and the sponsoring organization disburses $20,000 a year to the charity over five years, the donor can take a $100,000 deduction the first year. This may be more advantageous than five $20,000 deductions.
Because DAF funds are not subject to estate taxes, a DAF may help donors reduce the size of their taxable estate. Similarly, a DAF can lower capital gains taxes. If an individual donates assets that have increased in value, the person can deduct the market value rather than the original payment amount.
A donor-advised fund (DAF) allows Americans to deposit money into a fund over time and receive tax deductions for their contributions. While a sponsoring organization manages the funds, the donor recommends which charitable organization should receive the donation. The donor also recommends how to invest assets in the account.
A DAF offers immediate income tax deductions since the donor can claim a deduction in the year of contribution, not the year the charity receives the money. For example, if a donor makes a $100,000 donation, and the sponsoring organization disburses $20,000 a year to the charity over five years, the donor can take a $100,000 deduction the first year. This may be more advantageous than five $20,000 deductions.
Because DAF funds are not subject to estate taxes, a DAF may help donors reduce the size of their taxable estate. Similarly, a DAF can lower capital gains taxes. If an individual donates assets that have increased in value, the person can deduct the market value rather than the original payment amount.
