Top Scenarios for Donor-Advised Funds

Who can benefit most from using a DAF?
- Clients with Appreciated Stock: Donate appreciated stock directly to a DAF to enhance tax efficiency while supporting meaningful causes.
- Clients with a Windfall: Use a DAF to offset taxes during high-income years resulting from bonuses, stock options, or liquidity events.
- Business Owners Selling a Business: Establish a DAF before the sale to reduce capital gains taxes and create a charitable legacy.
How do DAFs align with estate planning?
- DAFs allow clients to designate charitable gifts that continue to make an impact after their lifetime.
- They streamline the donation process for clients already supporting multiple charities annually.
Can DAFs support family philanthropy?
- Yes, DAFs provide an opportunity to involve children in philanthropy.
- They help teach the next generation about charitable giving while making meaningful decisions together.
What are the key benefits of identifying clients for a DAF?
- Aligns financial goals with personal values.
- Offers a tax-efficient, flexible way to manage charitable giving over time.