DONOR ADVISED FUND
Early fall snow in Lower Carpenter Valley.
Donor Advised Funds (DAFs) can benefit you and help care for the Sierra.
DAFs are an increasingly popular charitable giving vehicle and can be a more tax and cost-efficient alternative to a private foundation. DAFs act like a personal fund dedicated to your philanthropic goals that you can manage in one place.
About DAFs
You can contribute cash, securities, or other assets to make an initial, irrevocable gift to a DAF at a sponsoring organization and receive an immediate tax benefit. Then, at any time – or on a defined schedule – you can recommend grants from your DAF to support the work of the Truckee Donner Land Trust and other charities. The assets in your DAF grow tax-free.
With a DAF, you can make annual recommendations on gifts to charity during your lifetime. And when you pass away, your children can carry on your legacy of giving, or the remainder can be distributed to the charities (beneficiaries) of your choosing. It's a convenient and tax-efficient way to manage your charitable giving.
NOTE: Starting in 2026, non-itemizers get a deduction for making charitable cash gifts up to $1,000 ($2,000 for married couples). However, gifts to DAFs are excluded.
William’s Story
William earned more money from his business this year, compared to last year, because he secured his biggest client contract ever. Since his family’s household income increased beyond what he had anticipated, his financial advisor recommended that he and his wife make a charitable donation to help reduce his taxable income in the current tax year. Their household donation was going to be close to six figures, and the end of the year was approaching fast. He didn’t want to rush his giving decisions with such a large donation in play.
William worked with his advisor to use a combination of appreciated stock and cash from their savings account to establish a donor advised fund with a local community foundation. That gave him and his family more time to consider which charities they wanted to support in the coming year. He and his wife decided to get their teenage son and daughter involved in their charitable giving, as well. They offered their kids an opportunity to research and recommend a specific grant amount to distribute through their DAF as an incentive to learn about and support the needs of their community. William also designated the Truckee Donner Land Trust as a 25% beneficiary of the DAF upon their passing, and their children will eventually continue their legacy of giving with the remainder of the DAF.
Benefits
Establish a flexible vehicle for annual charitable giving. Benefit from a more tax and cost-efficient alternative to a private foundation. Obtain a charitable income tax deduction in the year of your gift.
If you would rather initiate a gift from your DAF through other means, you may need this information:
· Truckee Donner Land Trust is a Registered 501(c)(3) with Tax ID/EIN: 68-0245327
· Please mail checks to: Truckee Donner Land Trust, P.O. Box 8816, Truckee, CA 96162
· Please notify us of your gift, so that we can correctly identify your gift and recognize your generosity.
Your employer may match your gift to the Land Trust – even when it’s made through your DAF. Some companies match gifts made by retired employees, too! Search for your company here.
This information is educational in nature. It is not offering professional tax, legal, or accounting advice. Please seek the specific advice of your tax advisor, attorney, and/or financial planner to discuss your unique situation.