Cardan Capital Partners co-founding partner Marti Awad has joined the investment committee of Rose Community Foundation, historically one of the most important nonprofit organizations in Denver.
Marti considers it an honor to lend her expertise to the oversight of more than $300 million of investment assets for the foundation, which was created in 1995 from the sale of Rose Medical Center, a hospital created by Denver’s Jewish community in 1949. The foundation’s mission is to enhance the quality of life in greater Denver through its leadership, resources, traditions and values. The organization accomplishes this through annual giving and by helping members of the Denver community with their own philanthropic giving.
One way the foundation helps facilitate individual giving is through a Donor Advised Fund (DAF) established at RCF. A DAF is like a charitable investment account, or simplified family foundation, created for the sole purpose of supporting charitable organizations the donor cares about. When a donor contributes cash, securities or other assets, the donor is generally eligible to take an immediate tax deduction. Those funds then can be invested for tax-free growth, and the donor can recommend grants be made from the DAF to virtually any IRS-qualified public charity.
Donating securities with a built-in gain to the DAF is a tax-efficient way to give. The donor will avoid any tax on that built-in gain, and if the securities have been held for at least one year, the full, fair-market value (not just the cost basis) will be deductible for taxpayers who itemize deductions.
Note that the Tax Cuts and Jobs Act of 2017:
- almost doubled the standard deduction for years 2018-2025,
- eliminated some itemized deductions and placed limitations on others, such as the new $10,000 ceiling for deduction of state and local taxes.
Taxpayers take the greater of the standard deduction, which is now $24,000 for married filers, or the itemized deductions on their tax returns. As a result of the tax law changes, most taxpayers will take the standard deduction instead of the itemized deduction.
Because charitable gifts are an itemized deduction, taxpayers using the standard deduction will not benefit from the charitable deduction. So, some taxpayers can use a strategy of bunching multiple-year giving into one year to push itemized deductions over the $24,000 threshold so they can take advantage of the charitable deduction. A DAF like the one established by Rose Community Foundation is a great vehicle to implement this strategy. By contributing annual giving for multiple years in one year to a DAF, a donor can exceed the standard $24,000 deduction and still make gifts to preferred charities from the DAF on a yearly basis.
Added benefits are that gifts from a DAF can be made at any time and that partnering with Rose Community Foundation provides access to philanthropic consultants who can help individuals, families and groups examine their values to define and achieve their charitable goals.
Please review this information about how to set up your own DAF at Rose Community Foundation.
Cardan Capital Partners does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.