Tyler: Yep. Looks like you made $100,000 in capital gains this year.Tax Authority: Okay, so you owe us. $20,000.Tyler: Oh, no. I don't like how you've been spending my tax money, so I sheltered that money.Tax Authority: Uh, that's illegal.Tyler: No, it's philanthropy. I put it all in a donor-advised fund.Tax Authority: And that $100K is deductible this year?Tyler: Yep.Tax Authority: And you're in a lower tax bracket now?Tyler: Yep.Tax Authority: You get to decide where and how that money gets spent?Tyler: As long as it goes to a public 501c3 non-profit recognized by you, the IRS.Tax Authority: Uh, yep. And we get a thank you card from a charity of your, well, my choice?Tyler: Well, that does sound nice.

Explore how donor-advised funds can help you manage capital gains while supporting charitable causes. Learn the ins and outs of tax deductions and philanthropic planning in a simplified manner.