What is a Donor-Advised Fund and How does it work? | Rob.CPA

In this video, I walk through an example of how Donor Advised Funds work and how you can use them as another tax strategy.

The use of setting up a Donor Advised Fund is a great way to save on taxes and contribute to a 501c3 charitable organization when the time is right. After you set up a Donor Advised Fund and put money into it, you get the tax benefit immediately, but you’re not required to donate to a charity that same year.

The funds in the Donor Advised account will grow tax-free. So if you put in $10,000 today and the account grows to $11,000, when you contribute to a charitable organization in 3 years, the additional $1,000 is not taxable to the charity.

In addition, I discuss the importance of tax planning and meeting with your CPA at least once a year before year-end. Once December 31 hits, there is very little tax planning that can be done in the new year for the year that just passed.

If you have any comments, please leave them in the box below.

About my channel:
Rob CPA channel was created with a mission to provide viewers with accurate content so they can be proactive in their tax planning strategies and build financial wealth. The video topics I selected reflect real-world issues that I’ve seen our clients experience relating to their personal tax returns, retirement plans, and accounting.

The channel allows me to share my passion for taxes, personal finance, and accounting. I create content I wish schools and entrepreneurship programs/accelerators would teach their students and companies. I take complex topics and simplify them for the viewers as well as show examples.

I will be covering the following topics:

- Personal & business tax planning tips;
- Personal finance;
- Accounting;
- Investing;
- Entrepreneurship