Tag Archives: donor advised funds

Wise giving

This article explains the extra tax benefits of donating stocks that have gone up in value rather than selling them first and then donating: Give Like a Smarty.

That is a wise way to give. But you can make it simpler and better by opening a Vanguard Charitable fund, where you donate directly to a fund in which you basically have complete control over the donations that come out. Schwab, etc. have similar programs.  I’m just a big Vanguard fan because of their extremely low management expenses.

You can review whatever stocks or mutual funds you have and make transfers from the investments with the highest % gains to maximize your tax benefits.  Why pay capital gains taxes and then donate?

The online tools make it easy to have checks sent directly from your fund to your designated charities.  If you keep a minimum balance there are no fees.

Leave a comment if you have questions about this.  It may sound complicated at first but once it is set up it is easy to administer.