When it comes to helping others, people are opening their wallets—wide. Charitable giving topped $499.33 billion in 2022, up from $484.85 billion in 2021, with individuals accounting for 64% of all charitable giving last year.1
There are approaches to philanthropy beyond the contribution of assets directly to a nonprofit. If you’re planning to give to charity before the end of the year but need more time to decide where to ultimately direct those assets or would like to donate to a number of different causes over the course of many years, a donor advised fund (DAF), such as the Morgan Stanley Global Impact Funding Trust (MS GIFT), may be a good option. Administered by a 501(c)(3) public charity, a DAF manages charitable donations on your behalf, while giving you important—and immediate—benefits.
The Features of Donor Advised Funds
DAFs offer several important features. Because DAFs are public charities, you’ll be eligible for a federal charitable income tax deduction2 when you contribute to the fund, even if:
- You want to delay decisions on where your money is going in order to develop a more thoughtful and impactful giving strategy
- You choose to give to qualifying public charities in installments over time
Let’s say you hold securities that have appreciated significantly. By donating the securities to a DAF, you will not owe the potential capital gains tax on the appreciation and can give yourself time to decide when and where to make your charitable gifts. Between the time you make a donation to a DAF and when you finalize your giving strategy, the donated assets can be invested, with the potential to grow tax-free.
DAFs can also offer you a highly effective way to donate more complex assets, including shares of privately held companies, real estate, art, automobiles or other items that may need to be appraised.
Interested in donating cryptocurrency? You can now contribute gifts of crypto assets (Bitcoin and Ethereum) to your Morgan Stanley GIFT account.
Some DAFs streamline your paperwork and administer grants, providing you with necessary documentation to claim a federal income tax deduction.3 You will also receive regular statements listing gifts, grants, fees and investment performance for your records.
Morgan Stanley offers a suite of philanthropic services through MS GIFT. The dedicated team of Morgan Stanley GIFT professionals can work with your Financial Advisor to help manage and administer your DAF.