The Future of Charitable Giving: Tax-Efficient Strategies and OBBBA Impacts-Course recording

Video Transcription

Video Summary

In this comprehensive presentation, Will Robinson, Director of Partnerships at UI Charitable, discusses Donor Advised Funds (DAFs) and legislative changes impacting charitable giving, emphasizing their value for financial advisors and clients. DAFs function as charitable bank accounts allowing donors to receive immediate tax deductions while granting gifts over time to qualified nonprofits. They accept diverse assets, including cash, securities, real estate, cryptocurrency, and private business interests, offering greater flexibility than private foundations.<br /><br />Key differences between DAFs and private foundations include lower setup costs and fees, higher tax deduction limits (up to 60% of adjusted gross income for cash), no required minimum distributions, and donor anonymity. Recent legislative changes through the One Big Beautiful Bill Act (OBA) introduced higher standard deductions, a $1,000-$2,000 above-the-line deduction for non-itemizers, a 0.5% AGI floor on deductible gifts, a 35% cap on charitable deductions for high earners, and a permanent 60% AGI limit on cash donations.<br /><br />Two main strategies to optimize charitable giving are outlined: charitable bunching—consolidating multiple years’ donations into one to exceed deduction thresholds—and pre-sale donations of private business interests to a DAF, enabling clients to avoid capital gains taxes and maximize deductions. The presentation concludes by encouraging advisors to initiate philanthropic conversations during portfolio reviews, high-income years, and tax or estate planning, highlighting how DAFs can support multi-generational legacy planning while providing meaningful tax advantages.

Keywords

Donor Advised Funds

DAFs

charitable giving

tax deductions

One Big Beautiful Bill Act

charitable bunching

private business interests donations

financial advisors

multi-generational legacy planning