Donor Advised Funds (DAF),
IRA Rollover or Stock Gifts
Donor Advised Funds
A donor-advised fund (DAF) provides donors with a centralized charitable giving vehicle. It allows philanthropically inclined individuals, families, and corporations to make an irrevocable charitable gift to High Hopes and other public charities that sponsor a DAF program and take an immediate tax deduction. Most sponsoring organizations of DAFs accept cash equivalents, securities, and certain other assets.
Main advantages of a donor-advised fund:
- Simplicity—The DAF sponsor handles all recordkeeping, disbursements, and tax receipts.
- Flexibility—Timing of your tax deduction can be separate from your charitable decision making.
- Tax efficiency—Contributions are tax-deductible, and any investment growth in the DAF is tax-free. It is also easy to donate long-term appreciated securities, eliminating capital gains taxes and allowing you to support several charities from one block of stock.
- Family legacy—A DAF is a powerful way to build or continue a tradition of family philanthropy.
- Privacy if desired—Donors may choose to remain anonymous to the grant recipient.
If you have a DAF with Fidelity Charitable, Schwab Charitable or BNY Mellon Charitable Gift Fund, High Hopes uses DAF Direct that enables you, the Donor, to recommend grants from your DAF directly from the High Hopes website. There are no transaction fees and 100% of the approved grant recommendation are sent to High Hopes.
Charitable IRA Rollovers
If you are 70 ½ or older, you can contribute up to $100,000 tax-free from a traditional IRA to High Hopes without being subject to federal income taxes on the distribution. The gift must be made directly from the custodian of your IRA to High Hopes. Your rollover gift will be excluded from your gross income, and it counts toward your required minimum distribution (RMD). For this year only, you may also be able to take advantage of special rules regarding Qualified Charitable Distributions as discussed here.
Gifts of Appreciated Stock
When you make a gift of appreciated stock your gift amount is the current market value of that stock (as determined by IRS rules), and you avoid capital gains tax when the stock is transferred directly to High Hopes.
For more information about these plans, and the other ways of supporting High Hopes, please contact Claire Gadrow, at firstname.lastname@example.org or by calling 860-434-1974 x122.