Contributing appreciated securities instead of cash to a donor advised fund lets a donor deduct full fair market value while avoiding capital gains tax on the appreciation entirely — but at a lower AGI percentage limit than cash.
How it works
The deductible amount this year is capped at a percentage of AGI — 60% for cash, 30% for appreciated securities. Whatever exceeds that limit carries forward for up to five years.
What this does not include
This computes the AGI percentage limitation only — it doesn’t verify the securities are long-term appreciated property (a requirement for the full fair-market-value deduction) or model the actual capital-gains-avoidance benefit in dollar terms.
How to use this calculator
- Enter your AGI and contribution amount.
- Select whether the contribution is cash or appreciated securities.
Frequently asked questions
Why is the limit lower for securities than cash?
Because a securities donation already avoids capital gains tax on top of the deduction — the lower AGI percentage limit is the tradeoff for that additional tax benefit.
Can I recommend which charities receive the money later?
Yes — that’s the defining feature of a donor advised fund: the deduction happens at contribution, while grant recommendations to specific charities can be made anytime afterward.
What happens to a carryforward if I don’t use it within 5 years?
It’s lost — unused charitable contribution carryforwards expire after five years if not used against sufficient AGI in that window.
