Instead, they might donate $30,000 to a donor-advised fund
One possible vehicle for bunching contributions is the donor-advised fund
. Taxpayers can claim the charitable tax deduction in the year of funding the donor-advised fund
and schedule grants over the next two years or other multi-year periods.
Create or Add to a Donor-Advised Fund
(DAF): This strategy may generate tax savings while streamlining your charitable giving.
If you want to still be able to claim a charitable deduction, what you need to do is instead of giving at the annual rate you normally give, you bunch a couple years' worth of charitable giving into a donor-advised fund
Zuckerberg and his wife Priscilla Chan have given Facebook stock worth (https://www.forbes.com/sites/kerryadolan/2018/05/02/here-are-16-billionaires-whove-donated-to-the-silicon-valley-community-foundation/#3a86631d1bfb) more than $1.75 billion to a (https://theconversation.com/donor-advised-funds-charities-with-benefits-74516) donor-advised fund
, essentially a charitable savings account that on a large scale operates like a foundation without having to follow the rules that foundations must observe, at the Silicon Valley Community Foundation since 2010.
These increases in net income were partially offset by a voluntary charitable contribution of $5 million made by the Bank during the second quarter of 2018 for the Quality Jobs Fund, a donor-advised fund
established to support quality job growth and small business expansion.
Schwab Charitable, a donor-advised fund
sponsor, reported this week that it facilitated more than $1.6 billion in grants to 71,000 charities in 2017.
(See the Trusted Advice box.) In these situations, you might want to contribute via a donor-advised fund
A mission-driven donor-advised fund
such as DonorsTrust offers a simple, secure, and tax-advantaged way to ensure your charitable intent does not stray from your principles.
One way to look at the performance of sponsoring organizations is through their "donor-advised fund
payout rate." For this analysis, payout rate is defined as: "Aggregate grants from (donor-advised funds
)" divided by "Aggregate (donor-advised fund
) value at beginning of year." (8) Using this calculation, the median payout rate for 2012 was 10 percent of the total value of donor-advised funds
held by the sponsoring organization.
In June, Children's National Health System and Benefunder, a hosted donor-advised fund
, announced a partnership to increase funding for pediatric research.