With the signing of the new tax plan into law, donors have started to consider how to maximize tax savings and continue annual charitable giving. With the increase in the standard deduction to $12,000 for individuals and $24,000 for married couples, many donors will likely not be able to itemize deductions for charitable giving. One way to maximize tax savings and support annual giving is to establish a Donor-Advised Fund (DAF) with the Paso del Norte Charitable Foundation.
DAFs are popular charitable giving funds that allow donors to make tax-deductible contributions, receive an immediate tax benefit, and recommend grants from the DAF to charitable organizations of their choice over time. Donors may establish a DAF in the Charitable Foundation with a gift or pledge of $5,000 or more in cash or securities over a five-year period using a simple gift instrument. DAFs are separately accounted for within the Foundation and the Foundation provides an annual accounting of the fund to donors. It's like having your own foundation.