How a Donor-Advised Fund Works for Tax-Smart Giving in 2026

In Episode 51 of The Tax Strategy Podcast, Lucas and Luna break down the donor-advised fund (DAF) — a tax strategy that lets you bunch charitable deductions into one year while spreading grants to nonprofits over time. They walk through a concrete example: a couple earning $200,000 who wants to give $15,000 annually but can itemize only every other year under the 2026 standard deduction. By funding a DAF with three years of gifts now, they claim ~$45,000 in itemized deductions this year, and then grant the money out bit by bit. Lucas explains the rule limiting DAF deductions to 30% of adjusted gross income for cash and 20% for appreciated stock, and why donating stock can avoid capital gains tax. Luna raises common pitfalls — non-cash assets besides stock, administrative fees, and the fact that the IRS requires the sponsoring organization to have 'donor-advised' in its name. They also touch on the 2026 regulatory landscape, including the proposed 50% cap on DAF grants to certain foreign charities. A practical guide for anyone thinking about charitable giving and tax efficiency. #DonorAdvisedFund #CharitableGiving #TaxStrategy #ItemizedDeductions #AppreciatedStock #CapitalGains #BunchingDeductions #2026Tax #Philanthropy #TaxDeductions #FidelityCharitable #SchwabCharitable #Finance #FexingoBusiness #BusinessPodcast #TaxPlanning #LucasAndLuna #TaxTips Keep every episode free: buymeacoffee.com/fexingo