A DAF is like a charitable investment account you control. Contribute cash, appreciated stocks, or other assets irrevocably today. You receive an immediate tax deduction for the full fair-market value (up to 60% of AGI for cash, 30% for long-term appreciated property to sponsoring public charities). The money grows tax-free inside the fund, and you recommend grants to your favorite 501(c)(3) charities whenever you choose—today, next year, or years from now.
Why DAFs still deliver big tax savings for high earners:
- Bypass capital gains tax (up to 23.8%) by donating appreciated securities directly.
- Clear the new 0.5% AGI floor efficiently by bunching multiple years of giving into one large contribution.
- Lock in the deduction now while directing impact later. Perfect for fluctuating income or liquidity events.
- Tax-free compounding multiplies your charitable power over time.
A client with $1M+ AGI transfers $100,000 of low-basis stock to a DAF. They deduct the full amount (subject to limits), potentially saving ~$35,000 in federal income tax at the capped rate, eliminate capital-gains tax, and retain full advisory control.
At Kerr Wealth Kernels, we can integrate DAFs into holistic plans, so high earners reduce today’s tax bill, grow wealth tax-efficiently, and create lasting philanthropic legacies.
Ready to run the numbers for your 2026 situation? Contact Kerr Wealth Advisors for a no-obligation conversation. (This is educational only—not personalized advice. Always consult your tax professional.)
H. Brad Kerr IV, Vice President/ Wealth Management, Financial Advisor
215.619.3926/ bkerr4@janney.com
1767 Sentry Parkway West Suite 110 Blue Bell, PA 19422
Janney Montgomery Scott LLC Financial Advisors are available to discuss all considerations and risks involved with various products and strategies presented. We will be happy to provide a prospectus, when available, and other information upon request. Janney Montgomery Scott LLC, its affiliates, and its employees are not in the business of providing tax, regulatory, accounting, or legal advice. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any taxpayer for the purpose of avoiding tax penalties. Any such taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor. Janney Montgomery Scott LLC is a member of the New York Stock Exchange, Financial Industry Regulatory Authority and the Securities Investor Protection Corporation.
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