Solutions, Taxes

How to minimize taxes under the new tax law using donor-advised funds

With the passage of the Tax Cuts and Jobs Act on December 22, 2017, donor-advised funds have become a far more important vehicle to help charitably-minded, tax-conscious individuals and families benefit from charitable donations.

In prior years, you may have enjoyed a charitable tax deduction, along with other itemized deductions, but under the new tax law, with a giant increase in the standard deduction, it will be much harder for most people to realize that same tax benefit. However, a donor-advised fund may be the tool you need to continue to maintain your charitable giving while also maximizing your tax savings.

From refugee care to Scripture translation, more than 35,000 NCF families use a Giving Fund (donor-advised fund) to make an impact for their favorite causes.

What is a donor-advised fund and how does it help reduce taxes?

A donor-advised fund is an easy, tax-efficient way to contribute to your favorite charities (while minimizing your taxes). Anyone can open a fund with an initial contribution of $5,000 or more, after which the fund can be professionally managed and invested for future growth. Once a donor-advised fund has been established, the donor can make contributions to charities out of the fund’s assets at any time.

Read the full story at Forbes.

Up Next

Transact or transform: What kind of giver are you?

Read Now
Editor's note: Stories appearing on NCF's website from third-party contributors are intended for informational purposes only, and we do not endorse or approve the content, services, products, or theological teachings they contain. Any questions or concerns may be directed to the original publisher of such third-party content.

Sign up for our
Saturday 7 email digest

Join 40,000+ subscribers who receive our email digest of the
week's top stories from We call it Saturday 7.

Read our privacy policy