Can I Use a Donor-Advised Fund to Get a Tax Deduction Now but Give Later?

Yes — a donor-advised fund (DAF) lets you make a large charitable contribution in one year (and take the full deduction that year) while distributing grants to charities over time — even years later. You get an immediate deduction for cash contributions up to 60% of AGI, or appreciated securities up to 30% of AGI. Donating appreciated stock to a DAF is especially powerful: you get a deduction for the full market value while avoiding capital gains tax entirely. Once money is in the DAF, you can invest it and let it grow tax-free. Vanguard Charitable, Fidelity Charitable, and Schwab Charitable offer DAFs with no minimum ongoing grant requirement.