There are several instances in which a DAF could help the client give more to charity and provide a big tax break, he added. These include:
• Eliminating or offsetting capital gains: This strategy can possibly be used when a client needs to rebalance a portfolio or own funds with high distributions.
• Exiting a business: The DAF can possibly help someone involved in a merger or the sale of an entire business.
• Experiencing a large increase in income: This can include large bonuses, generating an unusually large amount of profits, converted a Roth IRA or exercising stock options.
• Owning ill-liquid assets: The client might be looking to sell real estate or possibly owns private equity interests or private company stock.