All assets you contribute are treated as a gift to a 501(c)(3) public charity. This allows you to contribute up to 60% of adjusted gross income (AGI) in cash. For stocks, property, and other noncash assets you’ve held for more than a year, the limit is 30% of your AGI. Combining multiple asset types can help maximize your allowed deduction. Check your AGI with a tax professional to see what works best for you.

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Donor-advised funds (DAF) like The OJC Fund manage your donations (cash, stocks, and other assets) on your behalf. Even after the deposit, you retain the right to advise them about how, when, and to which charities to give. The benefits to you are many:

• You get a full, instant tax deduction no matter when funds are distributed
• You avoid capital gains and estate taxes on contributions of appreciated assets
• Charity is issued with privacy and confidentiality; no disclosure of your tax returns
• The DAF handles all administrative/bookkeeping duties related to your donations
• The DAF ensures your transactions are 100% tax-compliant and audit-proof

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Selling appreciated stock incurs capital gains taxes before you can write a check to a charity. By contributing securities, real estate, or other illiquid assets directly to a donor-advised fund (DAF), you benefit in three ways:

1. You avoid capital gains tax.
2. You give more to charity.
3. You get a bigger tax deduction. As long as you held the asset for longer than a year, the deduction is equal to its fair market value (not its cost).

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There are 4 main reasons:

1. Compliance for foundations is more costly and time-consuming than for a DAF.
2. DAF donors maintain an advisory role in directing grants to their favorite charities.
3. Tax deductions for contributions to private foundations have more limitations, including minimum contribution requirements and investment income excise tax.
4. DAF donors enjoy more privacy and discretion. Gifts can be anonymous, without the need to publish Form 990-PF.

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One great idea is opening a donor-advised fund account (for example, The OJC Fund). Among other benefits, this account gives you the flexibility to distribute charity over multiple years, but claim all tax deductions in a single year. Funds deposited into your account by 12/31 reduce your yearly taxable income. You get the full deduction upon deposit, even if funds are only given to charity years down the line.

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