The donor advised fund offers you significant tax benefits.

  • You receive an immediate tax deduction when you make your contribution.

  • Your deduction is the maximum allowed by law. You receive the full fair market value of your gift. For gifts of cash, up to 50% of adjusted gross income (AGI), and for gifts of appreciated securities, mutual funds, real estate, etc., up to 30% of your adjusted gross income for the year.

  • Charitable deductions in excess of AGI limits can be carried for an additional five (5) years beyond the year in which you make the gift.  

  • Avoid capital gains on donations of long-term appreciated securities.

  • Reduction in tax liability in peak earning years -Since there is no limit on annual contributions into a donor advised fund, every contribution you make to your donor advised fund can be deducted from that year's federal income taxes.  You have the ability to selectively reduce your taxes in peak earning years.

  • The ability to give more over time – any potential growth in assets is tax-free in your donor advised fund account which provides the potential for greater charitable gifts.

  • Donate now, decide later - Your fund gives you time to define your charitable goals and identify which charities will receive the proceeds without year-end tax pressures.

Donating Appreciated Securities
When you contribute assets to NPT you can potentially give more to charity and pay less in taxes.*  This chart demonstrates the tax and giving advantages of contributing appreciated assets to a donor advised fund. In this example, $100,000 in long-term appreciated securities are being donated, with a cost basis, or original purchase price of $30,000.

  If donor sells securities and donates the cash proceeds to the charity of his choice
 If donor contributes the securities directly to NPT
Value of appreciated securities: $100,000 $100,000
Donor's capital gains tax (15% of $70,000): $10,500 $0
Donation amount received by charity: $89,500 $100,000
Total Tax Deduction(assumes 35% bracket and 15% capital gains tax): $20,825 $35,000

* In the example above, the donor realizes a 41% savings in taxes and $10,500 more given to charity.

 
Tax Benefits of Donating Real Estate
By giving real estate, you receive the fair market value and the maximum tax deduction for your gift.  Find out more.