Donors Should Get Their Deductions in a Bunch

“Doubling up” (or tripling up) on charitable deductions by pre-paying future years’ annual contributions to one’s house of worship, college, hospital or other charities is a traditional strategy.  A 70-year-old widow who distributes $5,000 annually to various organizations could instead give these charities $15,000 every three years, preferably in appreciated securities. (Note that even nonitemizers save by giving appreciated securities.) Another plan would be to make several years’ worth of annual contributions to the donor advised fund of a community foundation or a “commercial” donor advised fund (operated by companies such as Vanguard and Fidelity). The deductions could be sufficient to let donors itemize, and they can “advise” charitable grants over the next several years.

Copyright © by R&R Newkirk. All rights reserved.