Webinar Replay

Special Note from Mary:

I did confirm and I can report back: 

• Does the 0.5% floor on individual charitable deductions for itemizers apply to DAFs?
• Does the itemized deduction limitation at $0.35 per apply to DAFs?

Both provisions apply to DAFs (since they both apply to charitable donations).  Note that both provisions go into effect for tax years beginning after Dec. 31, 2025.

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🧾 Summary for Financial Professionals: Tax-Smart Giving Strategies for Your Charitable Giving Goals

🔍 Overview

Mary Jovanovich of DAF Giving 360 (formerly Schwab Charitable) outlined key charitable giving strategies that maximize tax efficiency, particularly through donor-advised funds (DAFs). The discussion emphasized current tax law changes, donor behavior trends, and tactical tools for high-net-worth clients or those undergoing significant financial events.

1. Key Trends in Charitable Giving

• U.S. Philanthropy: Americans donated $592.5 billion in 2024, with individuals accounting for two-thirds of all giving.

• Resilience in Downturns: Charitable contributions persist or even increase during economic uncertainty or crises.

Source for giving statistics:

• Giving USA Foundation – https://givingusa.org

2. Donor-Advised Funds (DAFs): Structure & Strategy

• DAF Giving 360 is a public charity independent from Charles Schwab, facilitating tax-efficient charitable contributions.

• Donors receive an immediate tax deduction, while grants can be distributed over time.

• DAFs help:

  • Reduce capital gains tax via appreciated asset donations.

  • Support legacy and succession plans.

  • Offer flexibility vs. private foundations.

More info:

• DAF Giving 360: https://dasgiving360.org

3. Tax Law Changes Impacting Charitable Planning (Post-H.R.1)

Notable updates under the 2025 tax legislation:

• Estate/gift exemption: Raised to $15M.

• SALT deduction cap: Increased to $40,000 through 2030.

• QCD limit: Increased to $108,000 per person.

• Permanent deduction rules:

  • Cash contributions: up to 60% of AGI.

  • Non-cash appreciated assets: up to 30% of AGI.

• Itemized deduction cap: For top tax bracket, deduction value limited to $0.35 per $1.

Tax details:

• IRS QCD info: https://www.irs.gov/publications/p590-b

• IRS charitable contribution rules: https://www.irs.gov/charities-non-profits/charitable-organizations

4. Tax-Smart Charitable Strategies

a. Appreciated Securities & Asset Donations

• Avoid capital gains tax and claim FMV deduction.

• Useful during portfolio rebalancing or large income years.

• Accepted assets: stocks, real estate, cryptocurrency, business interests (LLCs, S-Corps), life insurance.

b. Bunching Donations

• Combine multiple years of giving into one to exceed standard deduction threshold and maximize itemization.

c. Qualified Charitable Distributions (QCDs)

• For IRA owners aged 70½+, distributions up to $108K/year go directly to charities (not DAFs), excluded from AGI.

More on QCDs:

• Fidelity guide: https://www.fidelity.com/building-savings/learn-about-iras/qcds

d. Roth IRA Conversion Offset

• Offset income from conversions with appreciated stock donations.

• Strategic before deduction limitations tighten in 2026.

e. Private Business Interest Contributions

• Donors can give business equity pre-sale to reduce capital gains and maximize deductions.

• Requires due diligence: transferability, valuation, and no prearranged sales.

5. Legacy Planning & Family Philanthropy

• Testamentary DAFs: Set up during life, funded at death via IRA, life insurance, or other assets.

• Succession planning: Donors can name individuals or nonprofits to continue granting after death.

• Avoids admin burden for charities and enables structured income streams.

Charity vetting tools:

• Charity Navigator: https://www.charitynavigator.org

• National Center for Family Philanthropy: https://www.ncfp.org

6. Resources & Tools

• Giving Guide: 13-topic framework to define mission, plan legacy giving, involve family, and assess giving vehicles.

• White Papers: Available on complex asset contributions (real estate, LPs, restricted stock, etc.).

• Support: DAF Giving 360 offers one-on-one consultation with donors, advisors, and CPAs.

Access materials:

• https://dasgiving360.org

✅ Takeaways for Advisors

• Use DAFs strategically for clients with:

  • Appreciated assets.

  • High-income events (retirement, windfalls, equity comp).

  • Legacy and succession planning goals.

• Re-evaluate giving strategies before 2026 when new limitations take effect.

• Encourage clients to define a charitable mission and budget to guide long-term philanthropy.