Donor Advised Funds: A Flowchart To Inform Strategic Giving

When you help your clients optimize their charitable giving and tax deductions, your advice makes a difference to them personally and financially. However, with the increased standard deduction, fewer of your clients are likely itemizing. Accordingly, they may not be deducting charitable gifts and, as a result, may not be making philanthropic gifts as frequently as they used to. 

What should you do?

Introduce The Donor Advised Fund

Donor Advised Funds (DAFs) are increasingly popular and valuable planning tools. Indeed, they offer an effective way to help your clients achieve their income tax goals without disrupting regular charitable giving. A DAF allows bunching to itemize and deduct donations in specified tax years while retaining control over the ultimate distribution to charity. 

When you have conversations with clients about strategic giving, consider using the “Should I Use A Donor Advised Fund (DAF) When Giving To Public Charities?” flowchart. It covers essential DAF considerations, including:

• Charitable goals
• Tax planning goals
• Funding strategies
• DAF basic mechanics
• Alternative charitable giving strategies 

Are you having broader charitable giving discussions with your clients? Then pair this flowchart with the “What Issues Should I Consider When Establishing My Charitable Giving Strategy?” checklist.

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