Aug 23, 2019, 12:56 PM
(From CNBC) Donor-advised funds are accounts that individuals can open at a brokerage firm or a large foundation and make gifts of cash and other assets. Though the fund isn’t required to distribute grants to the charity right away, the donor receives an immediate income tax deduction for making the gift. Fidelity Charitable saw a 50% increase in donor advised fund donations in the first six months of 2019. The recent increase in grant activity suggests a shift in donors’ approach to giving.
The increase can be attributed to nonprofits’ strategies around advancing their initiatives and causes, as well as the number of donor-advised fund accounts, said Pam Norley, president of Fidelity Charitable. For example, donors are increasingly making gifts of stock, rather than cash, as a strategy to bypass capital gains taxes. Another strategy that’s gaining traction is bunching charitable giving to itemize deductions in one year and take the standard deduction the following year.
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