A donor-advised fund is a charitable giving vehicle administered by another entity and created for the purpose of managing charitable donations on behalf of an organization, family, or individual.
A donor-advised fund requires the donor to set aside a certain sum of money that may be invested in stocks, and later, if the stocks appreciate in value, they can donate those stocks without worrying about capital gains taxes.
The good thing about donor advised funds is that, when they increase in value, the donor gets to claim a tax deduction that was larger than their cost basis.
THE BAD THING about donor advised funds, is that when the portfolio is down, the donor will claim a smaller deduction that their cost basis. AND DONOR ADVISED FUNDS CHARGE FEES TO DONORS! You pay for someone else to control your portfolio and you lose control of donating only the winning stocks.
With Stock Donor, you don’t need to donate until you have a gain! Your portfolio remains solely under your control ! Therefore you can always donate and receive a deduction that is larger than your cost basis! Also, donors NEVER have to pay Stock Donator a fee for using our service. 100% of the FMV of the tax donation will belong to the Donors!