Jill on Money with Jill Schlesinger

Episode: A Simple, Tax-Smart Account for Charitable Giving

Date: November 21, 2025
Guest: Fred Kaner, Managing Director at DAF Giving 360

Episode Overview

In this episode, Jill Schlesinger dives deep into the world of donor-advised funds (DAFs)—tax-advantaged charitable giving vehicles that are increasingly accessible to donors at all income levels. Joined by Fred Kaner, Managing Director at DAF Giving 360, Jill explores how DAFs work, dispels common myths, highlights important upcoming changes to tax law, and delivers actionable advice for anyone looking to maximize both their charitable impact and their tax efficiency.

Key Discussion Points & Insights

1. What is a Donor-Advised Fund?

[04:04]

• Definition:
  • “A donor advised fund is really an account for charitable giving where there’s a threefold process. A donor contributes… you invest, recommend an investment strategy… and then finally… when you’re ready, you can grant immediately or… over time.” — Fred Kaner
• How it Works:
  • Contributions can be made in cash, stocks, real estate, collectibles—anything that’s appreciated in value.
  • DAF liquids the asset, proceeds are invested, donor recommends grants to their chosen charities when ready.

2. DAFs Are for Everyone—Not Just the Wealthy

[06:08]

• No Minimums:
  • “There’s no minimum to open an account. You can open it with a dollar, or… at a zero balance and then fund it… consistent with what your goals are.” — Fred Kaner
• Inclusivity & Family Involvement:
  • More people of modest means are opening DAFs, sometimes using them as family philanthropic vehicles.
  • DAFs help instill a culture of giving: “They bring in their children and they say, 'What do you want to support and why?'... as part of… the holiday that we celebrate together as a family.”
• Efficiency:
  • DAFs consolidate giving, maximize impact, and are less administratively burdensome than private foundations.

3. Tax Advantages of Donating Appreciated Assets

[07:54]

• Maximize Tax Benefits:
  • “When they contribute to a donor advised fund… we liquidate the asset immediately… they receive an immediate fair market value deduction… and… avoid [capital gains tax].” — Fred
• Greater Charitable Impact:
  • The 20% in taxes that would be paid on capital gains ends up available for the charity instead.
• Convenience for Donors:
  • Many charities now accept DAF grants seamlessly online, making giving easier and more frictionless.

4. The Habit and Process of Philanthropy

[11:00]

• Charitable giving is a learned habit—DAFs help foster a thoughtful, ongoing approach.
• Charities are embracing DAFs and making the process easier for donors, which has “had a significant impact on the bottom line.”

5. Upcoming Tax Law Changes & Action Steps

[12:16], [15:26]

• 2025 Still Follows Current Rules:
  • High-income earners can currently deduct cash gifts up to 60% of AGI, 30% for appreciated non-cash assets.
• 2026 Changes:
  • Deduction value capped at about 35 cents on the dollar for those in the highest bracket (down from 37).
  • New “deduction floor” for itemizers—must give more than 0.5% of AGI to start claiming deductions.
    • Example: With AGI of $200,000, gifts must exceed $1,000 to be deductible.
• Actionable Advice:
  • Consider “prefunding” charitable giving—Jill shares that she and her wife put a portion of stock market gains into their DAF to maximize deductions under current rules.
  • Useful for those with windfalls (e.g., commissions, stock sales) or those considering Roth conversions.

6. DAFs & Roth IRA Conversions

[17:38]

• Donating to a DAF in a year you do a Roth conversion can offset some or all of the tax hit from the conversion.
• “If you make a charitable contribution, and you itemize, you can claim a deduction to ultimately reduce that tax exposure.” — Fred
• The tax benefit is realized immediately, but you can take your time deciding which charities to support.

7. Dormancy & Regulatory Oversight

[19:33]

• Industry best practices to avoid dormant accounts:
  • Proactively contacting donors if an account is inactive; if no response, DAF will grant funds based on past donor intent.
  • Ongoing conversations about possible regulatory requirements for payouts.

8. Beyond Cash and Stock—Accepting Unique Assets

[22:21]

• DAF giving 360 accommodates a wide range of unusual assets: cryptocurrency, real estate, grain, “Lamborghinis, a partial interest in an NFL team, skis, quarter horses…”
• Not all DAFs accept complex assets; DAF Giving 360 works directly or through partners to try to accommodate donors’ wishes.

9. Due Diligence and Charity Vetting

[24:31]

• DAF Giving 360 maintains a pool of about 2 million IRS-approved 501(c)(3) organizations.
• All recommended grants are checked for standing with the IRS and against legal investigations; rigorous due diligence protects both donors and the integrity of the fund.

Notable Quotes & Memorable Moments

• “You don’t need a ton of money to start [a DAF], but what you do need is to understand how they work and how they can work for you.” — Jill [01:45]
• “The process of philanthropy is learned… If you really want to achieve maximum impact… it’s important to be really thoughtful about how you do it.” — Fred [11:00]
• “The habit of philanthropy is one that is often learned. And it’s much easier to do this if we make it easier on the person who is donating the money.” — Jill [09:53]
• “[With DAFs] you receive the tax benefit for any contribution that goes in… at the time the contribution is made. But… you don’t have to feel pressured to get those dollars granted out to the charities immediately.” — Fred [18:56]
• “We have accepted over the course of… dirt, grain, Lamborghinis, a partial interest in an NFL team, skis, quarter horses…” — Fred [22:21]

Timestamps to Key Segments

• [04:04] — What is a Donor-Advised Fund?
• [06:08] — DAFs’ expanding accessibility for all donors
• [07:54] — Gifting appreciated assets & tax implications
• [12:16] — Upcoming changes to charitable tax rules
• [15:26] — Specifics and calculations on new deduction limits
• [17:38] — Matching DAF gifts with Roth conversions
• [19:33] — Dormant DAF accounts and industry best practices
• [22:21] — Accepting complex and unusual assets
• [24:31] — Vetting, charity approval & donor recommendations

Closing Advice

Jill and Fred urge listeners to consider whether a donor-advised fund fits their charitable and financial goals, especially in light of coming tax changes. Reviewing your own giving strategy—and acting before 2026’s new rules take effect—could help maximize your impact and your deductions.

“If you are charitably inclined, this is the way to go for most of you.” — Jill [26:26]

Resources:
For more on DAFs or to ask Jill a question, visit jillonmoney.com.