GLOSSARY · TAX & ESTATE

Donor-advised fund

An account at a sponsoring charity: you contribute cash or investments, take the charitable deduction in the year you contribute, and recommend grants to charities later. It is mainly used to bunch several years of giving into one year so that itemizing beats the standard deduction. Contributions are irrevocable, and they do not qualify for the deduction for non-itemizers or as qualified charitable distributions from an IRA.

Also called: DAF, charitable bunching, bunching deductions, charitable giving account
COMPUTE IT WITH YOUR NUMBERS
Standard vs itemized →Should I itemize or take the standard deduction?
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CHAPTER · TAX DEDUCTIONS & CREDITS MASTERY · STRATEGIESGiving to Charity Tax-EfficientlyCHAPTER · LEGACY & PHILANTHROPY PLANNING · STRATEGIESGiving to Charity Tax-Efficiently
RELATED TERMS
Standard deductionQualified charitable distribution
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