The New Year is almost here and the giving season is in full swing. People\u00a0are donating to charity more than usual and they must make numerous\u00a0decisions during uncertain tax law changes. \u00a0With the fiscal cliff\u00a0deadline just weeks away, we know changes in government spending and taxes\u00a0are looming. One major tax change Taxpayers fear is that Washington will\u00a0cut tax deductions for charitable gifts as soon as next year.<\/p>\n
This very\u00a0concern is addressed in a recent Wall Street Journal article titled\u00a0\u201cDeduct Now, and Give Later\u201d. Author Laura Saunders highlighted the value\u00a0of Donor Advised Funds as she offers the following scenario where a Donor\u00a0Advised Fund would make sense to set up before 2012 ends:<\/p>\n
\u201c\u2026a couple earning $200,000 gives $20,000 in cash to a charitable fund\u00a0this year. They take a 2012 deduction for $20,000, and the money goes into\u00a0a subaccount in their name at a sponsoring nonprofit organization.
\n<\/em><\/p>\nOnce in the subaccount, the money is invested and can grow tax-free until\u00a0the couple designates eligible groups to receive it, at which point there\u00a0isn’t any deduction. There isn’t a required annual payout, so the couple\u00a0might give nothing in 2013 and then a large donation in 2014, to one\u00a0church, charity or school\u2014or many. The sponsor handles all tax paperwork,\u00a0and some allow payouts of as little as $50.\u201d\u00a0<\/em><\/p><\/blockquote>\n
The Stewardship Foundation can assist donors and investors in setting up\u00a0a Donor Advised Fund and help them receive a tax deduction for 2012 up\u00a0until December 15, 2012.<\/p>\n