Where Do I Report Donor-Advised Funds On My Tax Return?

Tax season can be daunting for charitable donors, especially those navigating the complexities of reporting donor-advised fund (DAF) contributions on their tax returns. As an internet-native donor, you may be wondering: “Where do I report my DAF donations on my tax return?” Endaoment simplifies this process by providing the necessary documentation when you make a donation.

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Understanding Donor-Advised Funds (DAFs)

A donor-advised fund (DAF) is a charitable account designed for making grants to nonprofit recipients. Donors contribute assets—such as cash, stocks, or cryptocurrency—into the fund, receiving an immediate tax deduction. They can then recommend grants to qualified charities at a later time, while the assets in the fund grow tax-free.

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IRS Form 1040 - Schedule A (Itemized Deductions)

To report your DAF contributions on your tax return, use IRS Form 1040 - Schedule A (Itemized Deductions). Enter the total amount of your charitable contributions in the appropriate section. If any of your contributions exceed the fair market value of the donated asset, report this accordingly. Endaoment provides all the necessary documentation to make this process as smooth as possible.

Endaoment provides contribution receipts by email with detailed records of each donation to your DAF, including the date, amount, and type of asset contributed. If you’ve made any non-cash contributions exceeding $500, you may need to file IRS Form 8283.

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Additional Considerations for Different Asset Types

Endaoment supports a wide range of assets, including cash, stocks, and cryptocurrency. Donating appreciated assets held for more than a year, can result in significant tax advantages. Not only can you claim a deduction for the fair market value of the asset at the time of donation, but you may also avoid paying capital gains taxes on the appreciation.