Fidelity Charitable Donor Advised Fund in TurboTax

[Michael16]

I opened a donor advised fund in 2021 through Fidelity (Fidelity Charitable) and I'm trying to determine where to include that information in TurboTax. Do I include it on Charitable Donations and list "Fidelity Charitable" as the charity, with the Fair Market Value of the cash contribution as the amount? Similar to how I would include my cash contributions to other qualified charitable organizations?

[Hal_Al]

Q. Do I include it on Charitable Donations and list "Fidelity Charitable" as the charity, similar to how I would include my cash contributions to other qualified charitable organizations?

A. Yes, it's that simple.

Q.  Do I use  the Fair Market Value (FMV) of the cash contribution as the amount?

A. Yes.  But, the term FMV is not unusually used when talking about a cash donation.  When you indicate, in TurboTax (TT) that you made a cash contribution, TT will ask for the amount, not the FMV.  

[nth07]

Related question: I also have a Fidelity Charitable Donor Advised Fund. In 2021 I made both cash and appreciated stock contributions to the fund. My understanding is that cash contributions to a DAF are limited to 60% of AGI and appreciated stock is limited to 30%. When TurboTax asks "Were any of your donations to a fraternal order, veteran's group, nonprofit cemetery or other 30% charity?", I've answered yes. It then asks individually for each charity if it's a 100%/50% Charity, a 60%/50% Charity or a 30% Charity. If you choose 30% for the DAF contributions, it limits the cash and appreciated stock contribution to 30%. Am I doing this wrong? What's the solution? 

[PatriciaV]

Because your contributions to your Donor Advised Fund require different treatment, you may wish to report them as separate charities (ex: DAF-Cash, DAF-Stock), rather than two donations to the same charity. This may allow you to designate the proper limits for each donation.

[michaelklos23]

I have a similar question. I also created a Donor Advised Fund through my financial advisor in 2021. I am trying to figure out how to list this donation, and another, in TurboTax.

1.) Is it simply listing the cash amount to the Donor Advised Fund on TT?

2.) From that cash amount, I chose to grant about $2000 to the Boys and Girls Club of my city. That was a cash amount from the donor-advised fund, however, in my fund details, I see there are divestment instructions and asset allocations. Do I have to put that I donated stock to the Boys and Girls Club?

Thank you

[PatriciaV]

Yes, you receive an income tax deduction for the cash or assets you contribute to your Donor Advised Fund in the year you contribute. 

The IRS does mandate some limitations, depending upon your adjusted gross income (AGI):

1. Deduction for cash – up to 60 % of AGI.
2. Deduction for securities and other appreciated assets – up to 30 % of AGI.
3. There is a five-year carry-forward for unused deductions.

There are no further deductions for donations made from your fund by the organization that sponsors your DAF.

[Hal_Al]

Q1). Is it simply listing the cash amount to the Donor Advised Fund on TT?

A 1). Yes. you get a tax deduction (itemized on Schedule A) when you put money into the Donor Advised Fund.

Q 2).  From that cash amount, I chose to grant about $2000 to the Boys and Girls Club of my city. That was a cash amount from the donor-advised fund, however, in my fund details, I see there are divestment instructions and asset allocations. Do I have to put, in TurboTax, that I donated stock to the 

A 2).  No.  You do not claim a tax deduction when you send money from the Donor Advised Fund  to an actual charity, even if it comes out of the cash asset allocation.  You already got a deduction for putting money in the fund.  You don't get a second deduction when the Fund sends money to the charity you designate.

The Donor Advised Fund is a "charity", in the eyes of the IRS.  You get a deduction for donating to THAT charity.  From there, you only "advise" the fund that you would like THEM to make a donation to the Boys and Girls Club? 

[Miked8290]

I donated some appreciated stock to a donor advised fund.  My understanding is the donation is capped at 30% of my AGI.  However, in the "Charitable Deduction Limits Worksheet for Current Year Contributions", the Turbotax program entered my donation under Section E of the form - Contributions subject to the limit based on 20% AGI, rather than under Section D of the form - Contributions of capital gain property subject to limit based on 30% of AGI.  This results in a substantial decrease in the amount of my charitable deductions.  Is there a program glitch???

[eepping]

I saw the same thing in my tax return regarding donating appreciated stock to a Donor Advised Charity.  Turbotax had limited it to 20% of AGI after I selected the charity as a "Veteran's Group...etc".  I "fixed" it by deleting the Donor Advised Fund contributions and re-added them.  Then the software kept those donations at the 30% AGI limits.  Unless the Donor Advised Charity group is a "Veteran's Group...etc" don't select that option.

[Carol72]

Wondering how to enter my info into Turbotax. I contributed appreciated mutual funds (held for more than a year) to Fidelity Charitable Donor Advised Fund. When entering the contribution, I selected Items and then Securities (not stock). For Method Used to Determine Value, Fair Market Value is not one of the options, should I use Present Value? And then it wants to know Purchase Price, which I don't know. Is it ok to guess?  Later it wants to know the physical condition of the items?? And I was never asked about 30% limit - where is this info entered?

[Hal_Al]

Mutual fund shares should be entered as stock, rather than items.  Yes, it's OK to estimate the purchase price. 

You don't enter the 30% limit. TT calculates it and only applies it if needed.