An easy, impactful, and tax-smart strategy for pursuing your philanthropic
goals

As the end of the year approaches, many individuals, families, and business owners are seeking
ways to help fulfill their charitable giving and tax planning goals. Donor-advised funds are a popular way to help
accomplish multiple financial goals due to their ease and flexibility, and the impact they can provide.

A donor-advised fund, or DAF, is a charitable investment account that allows you to make donations
to your fund, receive an immediate tax-deduction, and then make grants from the fund over time. Below are six ways
this approach to charitable giving may benefit you and the organizations you support.

1. Simplify charitable giving

Donor-advised funds make it easy to centralize and manage your giving strategy from a single
convenient account. You can contribute a broad range of assets to your fund, including cash, publicly traded
securities (such as stocks bonds, and mutual funds), real estate, and even business interests. While many charitable
organizations are unable to accept complex assets, they are able to accept grants from your fund. There are also tax
advantages to donating appreciated stock or property through a donor-advised fund. You incur no capital gains tax on
gifts of appreciated assets to the fund.

2. Maximize your impact

In our view, Donor-advised funds are highly flexible, allowing you to determine the amount and
frequency of your contributions, how funds are invested, the number of 501(c)(3) charitable organizations you choose
to support, and when you want to make grants to one or more organizations. While donations to the fund are
irrevocable, they can grow tax-free, helping to further increase your philanthropic impact over time.

3. Take advantage of generous tax benefits

If you itemize on your tax return, a strategy using donor-advised funds for charitable giving can
provide an immediate tax deduction of up to 60% of adjusted gross income (AGI) for cash donations made via check or
wire transfer. For gifts of appreciated securities, mutual funds, real estate and other assets, you are eligible to
take an itemized deduction of up to 30% of your AGI. In both cases, donors enjoy a five-year carry-forward deduction
on gifts that exceed AGI limits.

4. Consider bunching donations

The Tax Cuts and Jobs Act of 2017 nearly doubled the standard deduction, resulting in fewer
taxpayers itemizing their returns. If you don’t itemize, you can’t deduct charitable donations. However,
donor-advised funds can enable taxpayers who may be on the cusp of itemizing to enjoy the best of both worlds by
consolidating several years of donations into a single tax year.*

For example, if you normally give $2,500 a year to charity, but that’s not enough for you to
itemize and take the deduction, you could bunch several years of donations into the current tax year. Let’s say you
want to bunch three years of donations. In this case, you would contribute $7,500 to your donor-advised fund this
year and deduct the full amount on your 2024 return. In the following two years, you would take the standard
deduction (assuming no significant changes in your income or other circumstances).

When you use donor-advised funds for charitable giving, you control how much and when the money is
donated to your favorite charities each year by making grants out of your fund over time. So, if you want to stick
to your schedule of granting $2,500 a year to charity, you can continue to do that over the three-year period in
this scenario. Keep in mind, this is just one example of how you could choose to bunch deductions when using
donor-advised funds. Be sure to meet with your tax and financial professionals before implementing this or other tax
strategies.

5. Make giving a family affair

Donor-advised funds can be an effective way to pass philanthropic values down to multiple
generations of your family. Since there is no limit on the number of qualified charitable organizations you can make
grants to, you can encourage children or grandchildren to recommend the charities they’re passionate about to
receive grants from your donor-advised fund, as long as they’re made to qualified 501(c)(3) organizations. This
allows family members to not only participate in and witness your legacy in action but can inspire younger
generations to embrace philanthropy.

6. Getting started is easy

In our view, establishing a strategy for charitable giving through donor-advised funds is quick
and easy when you work with your team of tax professionals and wealth advisors at Return on Life® Wealth Partners.
We can help you quickly set up and implement this or other charitable giving strategies that align with your tax and
legacy planning goals.

For more information about donor-advised funds or other tax-smart strategies, listen to our latest podcast episode
of Frank Wealth Insights. To learn how your team of independent wealth planning professionals at Return on
Life® Wealth Partners can help you and your family pursue the Return on Life® you desire, contact us today for a free
consultation.

About Return on Life® Wealth Partners

Return on Life Wealth Partners is an independent Registered Investment Advisor (RIA) founded in
1994, with headquarters in Cleveland. The team provides comprehensive wealth planning services to individuals,
families, and business owners. By examining clients’ lives before their money, Return on Life® aligns its advice
with clients’ values. With access to its Complete Family Office (CFO)ˢᴹ and Personal CFO™ services, Return on Life®
Wealth Partners aims to help clients achieve the milestones that matter most to them. This personalized approach
also extends to the institutional and corporate retirement plan services available through 401(k) Prosperity®.

* If you itemize your income tax deductions, you may be eligible for a deduction based upon the
value of your gift on the day that your contribution is made to the donor-advised fund. Tax rules specify the
effective date of such contribution as well as how gifts are to be valued and the deduction limits.

Donor-advised funds may be recognized as a tax-exempt public charity as described in Sections
501(c)(3), 509(a)(1), and 170(b)(1)(A)(vi) of the Internal Revenue Code. Any statement contained in this
communication (including any attachments) concerning U.S. tax matters is not intended or written to be used, and
cannot be used, for the purpose of avoiding penalties imposed on the relevant taxpayer. This information is not
intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your
specific tax or legal issues with your qualified advisors.

The opinions expressed and material provided are for general information purposes only.

Investment advice offered through Planned Financial Services, LLC, a Registered Investment
Advisor.

For additional information about the firm and our services, see our Disclosure
Brochure (Form ADV Part 2A) and Customer
Relationship Summary (Form CRS) brochure.

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Investment advice offered through Planned Financial Services, LLC, a Registered Investment
Advisor.