Question: How can an individual donor make a significant charitable gift anonymously, but not jeopardize the tax deduction?
Answer: Some people would prefer to make their charitable gifts without their identity being disclosed. However, donors generally need a receipt from the charity to document gifts for tax return purposes. In order to get a receipt, it is necessary to disclose the identity of the donor to the charity. When a donor makes a gift to his or her own donor-advised fund, the receipt comes to the donor directly from the fund. The donor can then recommend a grant (or donation) to the charity from the fund.
When the charity receives the gift, they’ll know it comes from the donor advised fund (but the name of the donor is not disclosed). This strategy allows charitable gifts without the donor’s individual identity being disclosed to the charity.
As always, if you have any questions or would like to learn more, please contact Steve Shane at firstname.lastname@example.org .
ABOUT STEVE SHANE
Steve Shane provides strategic counseling to clients in need of estate administration, charitable giving and business continuity planning while minimizing estate, gift, and generation-skipping transfer tax exposure. He offers legal guidance to clients on asset protection and the proper disposition of assets in accordance with the client’s objectives, while employing tax planning techniques such as the use of irrevocable trusts, life insurance planning, lifetime gifts and charitable trust. He is also experienced with drafting documents for business planning, the incorporation and application for exemption for Private Foundations and the administration of decedents’ estates.
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