Charitable Org Worksheet and Donor Advised Funds

Forum|Forum|4 years ago
January 7, 2022
2 replies
51 views

I created a Schwab Donor Advised Fund. I'm using the Charitable Org Worksheet to list the $ I transferred to the DAF in 2021. Question 4 at bottom of the Worksheet asks "What Type of charitable organization was it? What box do I check? (what's a "50% charity"?)

> 50% charity

> Other than 50% charity

> 50% Charity, 100% Donation

Best answer by SteamTrain

The

Schwab Charitable Fund

EIN: 31-1640316 | San Francisco, CA, United States

Is listed in the IRS's Pub 78 as

A public charity.

50% (60% for cash contributions)

Details about Schwab charitable fund (irs.gov)

______________________________________

So the first 50% charity would be your selection.

Note that donations of appreciated stocks/mutual fund shares may be limited to 30% of AGI anyhow

______________________________

________________________________

Other:

The 50% Charity, 100% Donation, selection ?

.......is only if you donate CASH that exceeds the 50% of AGI ( 60% for cash ) and the recent various Cares Act legislation laws apparently allow you to use up-to 100% of your AGI as a deduction, but again, only for CASH " and directly to a nondonor fund charity.

A recent Forbes article about those 100% cash donations indicated "Donations to donor-advised funds are not eligible for this larger contribution limit. Your tax-deductible charitable donation must be made directly to an eligible nonprofit."

How Anyone Can Get A 2021 Tax Deduction Charitable Donations (forbes.com)

I haven't found the actual IRS law that indicates this....but as long as your contributions to the donor advised fund aren't over the 50-60% of AGI limit anyhow, it wouldn't be a concern of yours.

tmunoz

Level 13

There are limits to the charitable donations you can deduct in a given year, based on a percentage of your adjusted gross income (AGI). Most public charities are 60% of your AGI for cash and 50% for other types of donations but some types of charities are limited to 30% or even 20%. If you exceed the amount, you have up to five years to use it and TurboTax will carry over the remainder to the following return.

This IRS web page shows different types of charities and their rate. There is also a Search for Charities link where you can search for a particular charity.
IRS Types of Charities

SteamTrainAnswer

Level 15

The