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FREQUENTLY ASKED QUESTIONS
How Often Can I Make Contributions To My Donor-Advised Fund Account?
You May Contribute At Any Time. Many Donors Like To Add To Their Donor-Advised Fund Accounts Immediately After They Recommend A Grant. Others Prefer To Make Regular Contributions And Build Up The Account For Future Grantmaking.
Who Are Donor-Advised Funds Right For And What's The Ideal Way To Utilize Them?
DAFs Are A Tool That Can Be Utilized By Anyone Wishing To Maximize Their Charitable Giving, Be Tax-Wise And Streamline The Administration Of Gifts. Like Some Other Advanced Planning Devices, There’s No One Ideal Way To Utilize A DAF. It Is Flexible Enough To Customize To A Donor’s Overall Advanced-Planning Strategy. DAF’s May Also Be Right For Anyone Looking For A Charitable Deduction In The Current Year But Would Like To Take Their Time Distributing The Assets To The Charities Of Their Choosing. And Maybe You Even Want To Pass On A Charitable Legacy To Future Generations.
Can My Children Be Involved With My Donor - Advised Fund Account?
Yes. You Can Name Them As An Advisor Or Successor Advisor To Your Account. They Can Legally Assume These Roles As Soon As They Are 18 Years Old.
What Kind Of Assets Can I Contribute To My Donor-Advised Fund?
Donations Can Be Made In Cash, Publicly Traded Securities Including Stocks, Bonds, Mutual Fund Shares, Restricted And Controlled Stock, Privately-Held Stock, Real Estate, Proceeds From Life Insurance Or From A Full-Paid Policy And Tangible Personal Property. Please Click On Disbursement Requests On The Donor Drop Down Menu For More Information.
At What Point Is A Contribution Considered A Charitable Donation?
A Contribution Becomes A Donation When The Asset Is “Out Of The Donor’s Control.” This Is Determined By The Type Of Asset You Contribute, When And How It Is Transferred To Your Donor-Advised Fund Account.
What Is The Best Type Of Asset That I Can Contribute To My Donor-Advised Fund?
The Most Common And Cost-Effective Contributions Are Appreciated Securities That You Have Owned For More Than One Year. You Avoid Any Capital Gains Tax On The Securities And You Can Deduct The Total Fair Market Value Of The Contribution From Your Federal Income Taxes, And Up To 30% Of Your Adjusted Gross Income.
What Are The Limitations On Charitable Deductions?
Under The Internal Revenue Code, Deductions For Charitable Contributions Are Subject To Certain "Percentage Limitations." That Means You Can Deduct A Stated Percentage Of Your Adjusted Gross Income ("AGI") In The Year You Take The Deduction. Contributions In Excess Of These Percentage Limitations May Be Carried Forward For Additional Years. Deductions For Contributions Of Long-Term Capital Gain Property—Such As Appreciated Securities Held For More Than One Year—Are Limited To 30% Of AGI. Deductions For All Other Contributions —Including Contributions Of Cash—May Be Taken Up To 60% Of AGI. Your Ability To Take Itemized Deductions May Be Subject To Certain Other Limitations. Please Contact Your Tax Advisor To Evaluate Your Tax Deductibility Limits.
Can The Income Accrued In My Donor-Advised Fund Account Be Deducted As An Additional Charitable Donation?
No. Only Contributions Are Tax Deductible. Growth Inside Your Donor-Advised Fund Account Is Not Eligible For An Additional Deduction.
Does my Tax Deduction Depend On The Type Of Asset I Contribute?
Yes. Here Are Some General Guidelines:​
1. Check/Wire: Your Charitable Deduction Is The Amount Of Your Cash Contribution.
2. Publicly-Traded Securities: If You Have Owned Your Donated Securities For More Than One Year, Your Charitable Deduction Is The Fair Market Value Of Those Securities, Determined By An Average Of High And Low On The Date You Contribute Them.
3. Securities That Are Not Publicly Traded: If You Have Owned Your Donated Securities For More Than One Year, Your Charitable Deduction Is The Fair Market Value Of Those Securities, Determined By You In A Reasonable Manner On The Date You Contribute Them. The IRS May Require You To Obtain A Qualified Independent Appraisal.
4. Real Estate: For Contributions Of Real Estate, Your Charitable Deduction Is The Fair Market Value Of That Real Estate, Determined By A Reasonable Manner On The Date You Contribute It. The IRS May Require You To Obtain A Qualified Independent Appraisal.
What Are Some Benefits Of DAFs?
There Are Several Benefits Associated With Donor Advised Funds. They Are As Follows:
1. Donors Receive Immediate Tax Deductions When They Make A Charitable Contribution To A Donor-Advised Fund Even Though The Actual Gift To A 501(C)(3) Public Charity Might Not Be Gifted Until A Future Year. Contributions Into A DAF Are Invested And Grow Tax Free.
2. Make Donations Throughout The Year And Tax Compliance At The End Of Year With Less Complexity And Paperwork To Deal With.
3. The Ability For A Donor To Give Long-Term (I.E., Owned For At Least One Year) Appreciated Securities, Private Business Interests, Private Company Stock, Partnership Interests, Real Estate And Life Insurance As A One-Time Gift And Make Smaller Donations Out To More Than One Charity As He/She Sees Fit.
4. Flexibility To Make Anonymous Gifts With Full/Partial/No Recognition.
5. DAFs Can Help Diversify Investment Portfolios. It’s Possible To Donate All Or A Portion Of Appreciated Securities And Sell Them From Within The DAF Without Having To Pay Tax On The Gain, Then Invest In A Manner Appropriate For The Donors Charitable Giving Plan.
6. The Donor Can Name Their DAF Account And Use The Name For Recognition Purposes, Or To Remain Anonymous.
7. Some Families Establish DAF’s As A Means Of Educating Their Children About Charitable Giving And Establish A Perpetual Legacy Family Fund.
8. It’s Possible To Name Successor Advisers, Such As Your Adult-Aged Children, And/Or Designate One Or More Charitable Organizations As Beneficiaries.
9. Unlike A Private Foundation Or Charitable Trust, The IRS Does Not Have Any Requirements Regarding How Quickly The Money Must Be Distributed.
Why Is The Net Amount In My Donor-Advised Fund Account Differ From The Amount Of My Charitable Deduction?
This Difference Is Due To Market Fluctuations And Liquidation Costs. NFL Asks That You Consult Your Tax Advisor To Determine Your Charitable Tax Deduction.
Are There Any Other Specific Types Of Grants That NFL Cannot Make?
NFL Cannot Make Grants To Private Non-Operating Foundations. Also, NFL Cannot Make Grants To Individuals. Grants Cannot Be Made To Political Candidates Or Parties. Grants Cannot Be Used For Any Personal Benefit, Such As Tuition, Dues, Membership Fees Or Any Goods Purchased At A Charitable Auction.
Can I Recommend A Grant From My Donor Advised Fund Account To Any Charity or Non-profit Organization? NFL Can Make Grants To Charitable Organizations That Are Tax-Exempt Under Internal Revenue Code (IRC) Section 501(C)(3) And Public Charities Under IRS Section 509(A). NFL Can Also Make Grants To Private Operating Foundations. NFL Cannot Make Grants To Private Non-Operating Foundations. If You Have A Special Grant Request, Please Contact A Member Of NFL's Staff.
Can I Make An Anonymous Grant From My Donor-Advised Fund?
Yes. You May Also Recommend A Grant In Someone's Honor Or Memory.
How Many Grants Can I Recommend In A Year?
There Is No Limit To The Number Of Grants You Can Recommend In A Year.
Do I File My Contribution Receipt With My Taxes At The End Of The Year?
You Will Receive IRS Form 8283 To File With Your Tax Statement At The End Of The Year. It Is Extremely Important To Review The Information On This Form Since It Is Your Responsibility To Submit Correct Information To The IRS.
What Are The IRS Requirements Regarding Donor Advised Funds?
Please Click The Following Link To Read The IRS Requirements. Https://Www.Irs.Gov/Charities-Non-Profits/Charitable-Organizations/Donor-Advised-Funds
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