Donor Advised Funds

As we navigate through 2026, new federal tax law changes—including higher standard deductions and a new 0.5% Adjusted Gross Income (AGI) floor for itemized deductions—may affect how charitable gifts provide tax benefits. In light of these changes, a Donor-Advised Fund (DAF) may be a valuable giving option.

DAFs allow donors to use a strategy often called “bunching.” By contributing multiple years’ worth of charitable gifts into a DAF during a higher-income year, you may be able to maximize your tax deduction (especially when giving appreciated assets) while retaining the flexibility to recommend grants to nonprofits over time.

DAF Benefits

• An immediate tax deduction in the year you contribute
• The opportunity to donate appreciated assets and potentially avoid capital gains taxes
• The flexibility to support charities, including St. Vincent de Paul — Madison, in future years

If you would like to discuss this type of giving, please contact Eric Fleming, Director of Development, at (608) 442-7200 x34 or efleming@svdpmadison.org.