A DonorsTrust donor-advised account affords you efficient and superior tax treatment--greater than that offered by private foundations and other financial planning tools. With an initial contribution of $10,000, you can set up a personal account funded with appreciated assets, cash, publicly traded securities, privately-held stock, or real estate. Capital gains taxes are not assessed on appreciated assets and all contributions qualify for the maximum charitable deduction allowable by the IRS Code for public charities. Your tax deduction(s) are immediate and are calculated in the year you make the contribution(s).
You may invest your account's assets (managed by Merrill Lynch) according to a personalized strategy, allowing for tax-free growth and the potential for greater asset distribution among your philanthropic interests. During the life of your account, there are no required distributions and no annual excise taxes.
You should consult with your professional tax and legal advisors to determine the tax implications of your gifts as well as any associated reporting requirements. For further guidelines on the tax treatment of charitable contributions, please request a copy of The Donor's Guide to DonorsTrust.