When considering donating your vehicle, keep in mind, you are not limited to using just one vehicle. People often map out a charitable plan that leverages several of these vehicles together.
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Donor-Advised Funds 2
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Private Foundations |
Charitable Lead and
Remainder Trusts
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Check, Cash
or Credit
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Organizations you can support
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IRS-qualified public charities
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Many organizations and individuals, as long as the grant is made for a charitable purpose
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IRS-qualified public charities and, generally, private foundations
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Public charities, private foundations and individuals
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Growth potential
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Yes | Yes | Yes | No |
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Donations of non-cash items
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Yes | Yes | Yes | No |
| Income tax deduction 1 |
50% for cash 30% for appreciated assets 3
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30% for cash 20% for appreciated assets 4
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Depends on the type of charity supported by the trust, and the type of trust
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50% 5 |
| Tax on investment income | None |
1% or 2% of net investment income
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Depends on the nature of the trust
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N/A |
| Option to support charities anonymously | Yes | No | Yes | No |
| Ability to name successors | Yes | Yes | Yes | No |
| Consider this when |
You want a turnkey giving solution with low costs and the potential to grow tax free over time
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You want to operate a charitable organization and potentially employ a staff, hire investment managers, actively manage grant making and sponsor charitable events
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You want a trust that can generate income for, and eventually pass a remainder interest on to, heirs and charities
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You want to make one-off donations and manage your own donation receipts at tax time
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1 At a 501(c)(3) public charity.
2 Percentage of adjusted gross income (AGI).
3 Appreciated assets held over a year are generally deductible at fair market value (this applies to both publicly and non-publicly traded assets).
4 Appreciated, publicly traded assets held for over a year are generally deductible at fair market value, while non-publicly traded assets are generally deductible only at basis.
5 When donating to a public charity. 30% when donating to a private foundation.
The information of this pages was prepared by Fidelity Charitable Planning Practice Management. For more information, download the Charitable Planning Guide
