How the Donor Advised Fund Works
- Establishing a Donor Advised Fund requires a minimum contribution of $10,000.
- Additional contributions may be made for $1,000 or greater.
- Contributions may be in the form of cash, mutual fund shares, stocks, bonds, or other securities.
Possible Tax Advantages of a Donor Advised Fund:
- You may qualify for an immediate federal and state tax deduction of up to 50% of your adjusted gross income for each contribution made to your account.
- When donating appreciated securities, you avoid paying capital gains taxes of up to 20% plus state income taxes.
- Contributions you make will be removed from your estate, and not subject to estate taxes.
- Appreciated property may be donated without triggering the federal alternative minimum tax (AMT).