Do you have a Donor Advised Fund?

A donor-advised fund (DAF) is a charitable giving program that allows you to combine the most favorable tax benefits with the flexibility to support your favorite causes.

DAFs have quickly become America’s most popular tool for charitable giving. DAFs are like your own private foundation but without any of the administrative red tape. One of the simplest ways to give real estate, stocks, mutual funds or commodities, DAFs offer an immediate tax deduction for the market value of your donation, but also allow you time to decide when you want to give.

Of special note: The Colorado Department of Local Affairs (DOLA) and other entities managing the Homeless Contribution Tax Credit (HCTC) and Childcare Contribution Tax Credit (CCTC) have specified that donations through DAFs do not qualify for either tax credit.

Additionally, the IRS has strict rules when it comes to donor advised funds and event tickets for charitable fundraisers such as galas, golf events. Specifically, they prohibit DAFs from covering any part of an event ticket, even if a segment of the ticket price is deemed tax-deductible.