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
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CHAPTER · TAX DEDUCTIONS & CREDITS MASTERY · STRATEGIESGiving to Charity Tax-EfficientlyCHAPTER · LEGACY & PHILANTHROPY PLANNING · STRATEGIESGiving to Charity Tax-EfficientlyRELATED TERMS
SOURCES
- Publication 526, Charitable Contributions. Internal Revenue Service.
- Donor-advised funds. Internal Revenue Service.