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.

Donor-Advised Funds 2
Private Foundations
Charitable Lead and
Remainder Trusts
Check, Cash
or Credit
Organizations you can support
IRS-qualified public charities
Many organizations and individuals, as long as the grant is made for a charitable purpose
IRS-qualified public charities and, generally, private foundations
Public charities, private foundations and individuals
Growth potential
 Yes  Yes  Yes  No
Donations of non-cash items
 Yes  Yes  Yes  No
Income tax deduction 1
50% for cash 30% for appreciated assets 3
30% for cash 20% for appreciated assets 4
Depends on the type of charity supported by the trust, and the type of trust
50% 5
Tax on investment income None
1% or 2% of net investment income
Depends on the nature of the trust
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
You want to operate a charitable organization and potentially employ a staff, hire investment managers, actively manage grant making and sponsor charitable events
You want a trust that can generate income for, and eventually pass a remainder interest on to, heirs and charities
You want to make one-off donations and manage your own donation receipts at tax time

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


Print Friendly