Tax-Advantaged Giving

Donor-Advised Funds

A donor-advised fund (DAF) provides donors with a centralized charitable giving vehicle.

It allows philanthropically inclined individuals, families, and corporations to make an irrevocable charitable gift to a public charity that sponsors a DAF program and take an immediate tax deduction. Most sponsoring organizations of DAFs accept cash equivalents, securities, and certain other assets.

How it works - overview

  • Establish your donor-advised fund by making an irrevocable, tax-deductible donation to a public charity that sponsors a DAF program
  • Advise the investment allocation of the donated assets (any investment growth is tax-free)
  • Recommend grants to qualified public charities of your choice, such as NorCal GSP Rescue

Main Advantages of a Donor Advised Fund

  • Simplicity – The DAF sponsor handles all record-keeping, disbursements, and tax receipts.
  • Flexibility – The timing of your tax deduction can be separate from your charitable decision-making.
  • Tax-efficiency– Contributions are tax-deductible, and any investment growth in the DAF is tax-free. It is also easy to donate long-term appreciated securities, eliminating capital gains taxes and allowing you to support multiple charities from one block of stock.
  • Family legacy – A DAF is a powerful way to build or continue a tradition of family philanthropy.
  • No start-up costs – There is no cost to establish a donor-advised fund. However, there are often minimum initial charitable contributions to establish the DAF (typically $5,000 or more).**
  • No transaction fees – Once approved, 100% of your recommended grant goes to your qualified public charity of choice.**
  • Privacy if desired – Donors may choose to remain anonymous to the grant recipient. But we would like to be able to thank you, so please let us know even if you prefer that we not publicize your name in any manner.

** Sponsoring organizations generally assess an administrative fee on the assets in a DAF. These fees vary by the charity that sponsors a DAF Program.

How it works  - details

An individual or entity makes an irrevocable contribution to a sponsoring charitable organization to establish a donor-advised fund. This person becomes a donor-advisor.

  1. The sponsoring organization allocates the charitable contribution to the particular donor-advisor’s DAF. The donor-advisor has the opportunity to name the DAF (e.g., The John Doe Fund).
  2. The donor-advisor retains advisory privileges over the investment allocation for the DAF. Since the assets in the DAF belong to the sponsoring organization, any investment growth is tax-free. The investment options available vary by sponsoring organization.
  3. The donor-advisor has advisory privileges over the disbursements made from the DAF. The disbursements are recommended by the donor-advisor, but must meet the grant-making criteria of the sponsoring organization. Typically, disbursements may only be recommended to IRS-qualified public charities exclusively for charitable purposes. Additionally, the donor may not receive any more than incidental benefits as a result of the disbursement.
  4. Once the sponsoring organization approves the recommended disbursement, the grant is made to the qualified charitable organization. Note: Often, the sponsoring organization does not include any details about your gift in its communications with the qualified charitable organization, so we really appreciate it when you let us know a gift is coming!

Widget - Advise a Disbursement

 

Retirement Giving (IRAs, QCDs & RMDs)

Why Qualified Charitable Distributions (QCDs), also known as IRA gifts or IRA Charitable Rollovers, are beneficial for both donors and charities:

  • Account holders normally pay taxes when money is taken out of their traditional IRA (Individual Retirement Account)
  • QCDs are not added to your taxable income like Required Minimum Distributions (RMDs) are
  • QCDs count towards your RMD if you are 73 or older
  • QCDs lower your overall IRA balance, which reduces future RMDs
  • Your QCDs make an immediate impact on our mission of helping GSPs in need

Key points:

  • Anyone age 70.5+ with a traditional IRA can make a QCD, even before RMDs kick in at 73. Sadly, 401(k)s and 403(b)s are not eligible
  • Your funds transfer directly from your IRA custodian to the non-profit; as the donor, you should never touch the money
  • The gift is excluded from your taxable income, which reduces AGI (adjusted gross income), protecting Social Security and potentially lowering Medicare premiums.
  • For 2026, you can give up to $111,000 per individual ($222,000 for couples) - and remember, QCDs count towards your RMD (Required Minimum Distribution), if applicable
  • The “First dollars out” rule
    • In any given year, the first dollars taken out of an IRA are considered part of the RMD until the RMD is satisfied
    • If you want to satisfy part or all of your RMD using a QCD, make the QCD before taking other distributions - otherwise, if you satisfy your RMD first, it will be fully taxable
    • QCDs are always nontaxable
  • QCDs bypass new restrictions on itemized deductions entirely - they are income exclusions, not deductions, and are the best tax-saving option for most

Stocks & Securities

It's simple to make a stock gift, whether you go through your broker or handle it yourself online at your brokerage house. Here's the information you'll need to transfer stocks:

Account Title: NorCal German Shorthaired Pointer Rescue Inc.

Account Number: 31296193

Receiving Institution: Vanguard Brokerage Services

DTC Transfer Number: 0062

For individuals who have a stock portfolio, donating stock is the smartest way to support causes you care about.

Here’s why: Donating stock saves on two types of taxes

  • When stock is given directly to a non-profit organization, you avoid all capital gains taxes (and state income tax on capital gains)
  • You also receive a federal income tax deduction for the full present value of the stock (and in some states, a state deduction too)

Example:

Donor profile: Christian is the Senior Director of Media and Entertainment at the Walt Disney Group. He is 45 years old and currently lives in Santa Monica with his wife, two daughters, and their dog, Scruffy.

  • Christian bought 200 shares of Netflix in 2005 for $1,000.
  • Today, his shares are worth $101,000.
  • His “Capital Gain” is $100,000.

When Christian donates his stock:

  • He avoids $20,000 in federal capital gains
  • He avoids 13.3% ($13,300) on state income taxes
  • He also avoids 37% ($37,370) on federal income taxes
  • Total tax avoided = $70,670 (70% of his gift)

Christian can fulfill his $100,000 pledge for less cost to him!

Some donors, like Ruth and Larry, do not want to change their portfolio. Donating stock is still the smartest way to support our mission! You can keep your portfolio the same and save on future capital gains.

Example:

Donor profile: Ruth and Larry are a retired couple based in Chicago, Illinois. They are both 65 years old and are looking for smart ways to make their annual gift.

  • They bought 10 shares of Amazon in 2019 for $10,000.
  • Today, the shares are worth $30,000
  • Their “Capital Gain” is $20,000.
  • They would like to hold on to this stock to help support their grandchildren’s college fund.

When Ruth donates their shares:

  • They avoid $3,000 in capital gains and state income tax
  • They still avoid 4.95% ($990) on state income taxes
  • They still avoid 22% ($6,600) on federal income taxes
  • Total tax avoided = $10,590 (25% of her gift)

What if I don’t want to change my portfolio?

Stock giving is a win-win, even for people who don’t want to change their portfolios. You can always donate shares of appreciated stock, then buy the same shares. When you do this, you eliminate all the capital gains on those shares, and your “cost basis” is reset to the current price, potentially saving you enormous amounts in the future.

Cryptocurrency Gifts

We now accept donations of Bitcoin and other cryptocurrencies!

1. Go to cryptoforcharity.io.

2. Pick NorCal GSP Rescue from the list.

3. Donate crypto and get a tax receipt.

Donations of appreciated cryptocurrency don’t trigger capital gains taxes and may be tax-deductible for the full value.

Real Estate Gifts

Are you considering donating real estate? RGF - Realty Gift Fund, a non-profit itself, exclusively accepts gifts of real estate… of any type… from anywhere… excluding timeshares. Properties with a net market value (after deducting any donation costs) of $150,000 will be considered on a deal-by-deal basis, but there is no limit on maximum value. Realty Gift Fund accepts Outright Donations, Bargain Sales, Partial Interests, and Bequests. Donations can be used to fund one or multiple other charities, in any combination, including donor-advised funds. For more information, go to https://realtygiftfund.org/steps-to-donation/

The information here is provided for educational purposes only and is not intended to provide, and should not be construed as providing, legal or tax advice. This information is general in nature and is not intended to serve as the primary or sole basis for investment or tax planning decisions. Please be sure to talk with your financial and tax advisors.

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