| | Direct Donation | Donor-Advised Fund |
| Charitable Entity |
Generally a public nonprofit organization established to fulfill its charitable mission and engage in charitable activities. |
A public charity that invests contributions from several donors and makes grants to nonprofit organizations recommended by donors. |
| Benefits to the Charity |
Charity receives assets immediately. |
Fund generally makes charitable grants as recommended by donors. CWLA and its member agencies will receive a percentage of each contribution made, and grants may be made to CWLA and its member agencies from donor accounts. |
| Benefits to the Donor |
- Contribution generally deductible in current year.
- Pay no capital gains tax on contributions of appreciated securities.
- May receive an immediate tax deduction on cash donations up to 50% of AGI.
- May receive an immediate tax deduction on stock donations up to 30% of AGI.
- Reduced estate tax liability.
- Able to donate large blocks of stocks.
- Little to no costs involved.
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- Contribution generally deductible in current year.
- Pay no capital gains tax on contributions of appreciated securities.
- May receive an immediate tax deduction on cash donations up to 50% of AGI.
- May receive an immediate tax deduction on stock donations up to 30% of AGI.
- Reduced estate tax liability.
- Able to donate large blocks of stocks.
- Ability to designate account advisors and successors to build a legacy of charitable giving.
- Can appoint family members for grantmaking.
- Can recommend grants on own timetable.
- Choose anonymity or public recognition on grants.
- Contributions may grow in the fund, thereby increasing giving power.
- Low set-up and account maintenance costs.
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