Craig explains how to get a $500K tax deduction immediately by putting money you're already planning to give away into a donor-advised fund. You can also convert $500K from an IRA into the fund in the same year to lower your tax bill while keeping the money earmarked for future charitable gifts.
A lot of the clients that we have are people that have a real strong charitable intent also. So they know that during their life, they're going to make charitable contributions to their church or some 501 organization. Let's say they've got $1 million sitting out in a brokerage account someplace, and they know they're going to give money over their lifetime. You can use what's called a donor advised fund, right? You can go put $500,000 that you're going to give away anyway. That becomes an immediate tax deduction of $500,000. You can convert $500,000 out of your IRA that year and cost you much tax. And now all that money is sitting over there in the donor advised fund and you save this enormous amount of tax.
