Guidelines and Limits for Donor-Advised Funds - Maximum Tax Deductions for Charitable Gifts

Guidelines and Limits on Donor-Advised Funds
You may already know that donating through a Donor-Advised Fund is an excellent way to help charities and possibly save on your own taxes, but there are a few details to keep in mind.
If you are intending to donate cash to your donor-advised fund, your tax deduction is limited to 60% of your adjusted gross income that year. This limit runs through 2025. You may consider spacing out your contributions over multiple years if your gift is going to be a significant percentage of your income.
Donating appreciated stock can be a good way to save on capital gains taxes, but you are limited to just 30% of your adjusted gross income (AGI) if you donate this way.
For accounts at two of the biggest providers, Schwab and Fidelity, there is no minimum initial contribution. Fees for the account start at 0.6% per year, and drop with larger balances. There are also fees for the investment funds, which can range from a few hundredths of a percent for simple index funds to more expensive and unpredictable funds.
Grants, that's what gifts to charity from the account are called, can be done in small amounts, usually $50 or more. For those big providers like Schwab and Fidelity, the grants are done online simply and quickly.
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