Want to give more to charity AND maximize your tax savings? In this video, Michael Ruger, CFP® at Greenbush Financial Group, explains: ✔ Why most taxpayers no longer get deductions for charitable gifts ✔ How a Donor Advised Fund works ✔ Using appreciated stocks to fund these accounts ✔ The rules, limits, and investment strategies inside these accounts ✔ How to set one up and when it makes the most sense (and when it doesn’t) #DonorAdvisedFund #CharitableGiving #TaxStrategy #MichaelRuger #GreenbushFinancial Fidelity Donor Advised Fund Website: Vanguard Donor Advised Fund Website: 💰 For More Financial Education: Visit my YouTube Channel: Greenbush Financial Group Check out my Website: ❓ Have Questions About This Video? Contact Michael Ruger with Questions: 518-477-6686 or mruger@ Visit our website: Subscribe to our channel for more financial planning tips: Leave a comment below! ------------------------------------ 0:00 Intro 1:20 2024 Standard Deduction Limits 2:23 Example 3:38 Standard Deduction VS Itemizing 4:28 What is a Donor Advised Fund 5:27 Tax Benefits of Contributing 7:40 Minimum Grant Requirements 8:36 How These Funds Operate 11:29 What Happens if the Owner Passes Away 12:25 Additional Tax Benefit 14:11 Annual Limitations 15:10 Not the Right Fit for Everyone --------------------------------------- 🔔 Stay Updated If you found this video helpful, please like, comment, and subscribe! Don't forget to hit the bell icon for notifications on new uploads. Frequently Asked Questions (FAQs): Why can fewer taxpayers deduct charitable contributions now? After the 2017 Tax Cuts and Jobs Act (TCJA), the standard deduction nearly doubled and capped state and local tax (SALT) deductions at $10,000. Because of this, most taxpayers now take the standard deduction instead of itemizing, which means they can’t deduct charitable donations. What is a Donor Advised Fund (DAF)? A Donor Advised Fund is a charitable investment account that allows you to make a large, tax-deductible contribution in one year, invest the funds for potential growth, and distribute money to charities over time. Providers like Fidelity and Vanguard operate these programs through nonprofit foundations. How does a Donor Advised Fund help restore the tax deduction for charitable giving? By making a single large contribution to a DAF, donors can exceed the standard deduction threshold and itemize on their tax return in that year. The donor then uses the fund to make charitable gifts gradually over future years, even though they already received the full tax deduction upfront. Can you fund a Donor Advised Fund with appreciated stock? Yes. You can contribute appreciated securities instead of cash. This approach allows you to receive a tax deduction for the full fair market value of the stock while also avoiding capital gains taxes on the appreciation. What are the tax deduction limits for contributions? Cash contributions to a DAF are deductible up to 60% of your adjusted gross income (AGI), while appreciated securities are deductible up to 30% of AGI. Any excess contributions can be carried forward for up to five years. When does a Donor Advised Fund make sense? DAFs make the most sense for individuals with large charitable intent who want to bunch multiple years of giving into one tax year—often after a major income event like selling a business or receiving a large bonus.