Schwab Charitable

Private Foundation Conversion

Is Converting Your Foundation to a Donor-Advised Fund Right For You?

This survey can help you determine if a donor-advised fund account makes sense for you. Whether you want to convert your private foundation to a donor-advised fund account or are considering one as a complement to your foundation, Schwab Charitable can help.

Deductibility Limits (Question 9 of 10)
Do you expect that in some years your deductible charitable contributions might exceed either 30% of your Adjusted Gross Income (AGI) for cash contributions or 20% of AGI for the contribution of securities?

No.

Don't Know

Yes.1

considerations

Leveraging the tax deductibility of charitable contributions can be an effective way to maximize philanthropic impact. For some types of donated property, the deductibility rules are the same whether the property is donated to a private foundation or to a donor-advised fund. For example, a fair market value deduction generally is available for contributions of appreciated publicly-traded stock held for more than one year to either a private foundation or a donor-advised fund account. In other areas, the deductibility rules differ.

Private Foundations:
  • Contributions to private foundations are subject to an annual income tax deductibility limit of 30% of Adjusted Gross Income (AGI) for cash contributions and 20% of AGI for contributions of securities.
  • For contributions of appreciated securities (other than publicly-traded stock) and real estate held for more than one year, the amount of the deduction generally is limited to the donor's cost basis.
Donor-Advised Funds:
  • Contributions to donor-advised funds are subject to a higher annual income tax deductibility limit of 50% of AGI for cash contributions and 30% of AGI for contributions of securities.
  • For contributions of appreciated securities or real estate held more than a year, the amount of the deduction is based on its current fair market value.
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Schwab Charitable does not provide specific individualized legal or tax advice. Please consult a qualified legal or tax advisor where such advice is necessary or appropriate.

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