Tax-Savvy Charitable Giving: Why Tax Planners Should Recommend Donor-Advised Funds

At the Greater Kansas City Community Foundation, we are fortunate to work with thousands of individuals, families and companies to support their philanthropic giving through donor-advised funds (DAFs) and other charitable vehicles. Before opening a donor-advised fund, donors often turn to their CPAs and wealth managers for guidance on strategically allocating their charitable giving.

If you are a CPA or are offering tax planning advice to clients, you likely recommend charitable tax deductions as a strategy to optimize your client’s tax position. Here’s why a donor-advised fund should be at the top of your recommendations:

Maximizing Tax Savings

When your clients contribute to a donor-advised fund, they receive the maximum tax deduction allowed by law. For clients experiencing a high-income year, a donor-advised fund could help maximize deductions when clients would enjoy it most.

Simplify Charitable Giving

If your clients manage stacks of charitable tax receipts every year, a donor-advised fund can streamline their record-keeping. With a donor-advised fund, they receive a single tax receipt for their contributions, eliminating the hassle of tracking multiple donations.

Offset Capital Gains Taxes

Your clients can donate appreciated assets, such as stock, real estate or business interests, which may allow them to avoid capital gains taxes while still receiving a full fair market value deduction.

With countless donor-advised fund providers, why recommend the Community Foundation over others?

Legacy Planning Expertise

Our philanthropic advising team has decades of experience helping donors carefully and thoughtfully consider their charitable legacies. We can help your clients involve younger family members in their giving strategies, so their impact lasts for years to come.

Knowledge in Kansas City and Beyond

If your clients in Kansas City need assistance identifying and connecting with nonprofits in our region, we can help. For your clients who don’t have ties to the metro, you can recommend our national entity, Greater Horizons, where they’ll receive the same expertise and services.

If you are looking to offer more value to your charitably inclined clients, let us know. We’re happy to share how we can support them and their tax-smart charitable giving.

Authored by: Chris Major, Business Development Advisor