ASCPA Converge 2023 Guest Speaker – Bruce Hosler


November 6th, 2023, Guest Speaker Bruce Hosler recently presented on Donor-Advised Funds:

The Pros, Cons & Gotchas at CONVERGE23 for the Arizona Society of CPAs,
held at the Desert Willow Conference Center in Phoenix, Arizona; this year’s attendance was just over 250 CPAs.

Donor-Advised Funds (DAFs) are attractive to clients for many reasons. One of the big reasons is that a DAF provides you with the opportunity to add value by guiding the rules of donating highly appreciated assets.  Many people are accustomed to being solicited annually by various charities seeking cash donations, so it is common to make charitable cash donations annually.

The state of Arizona supports specific classes of charities by offering state tax credit programs. Generally, one of the requirements of Arizona tax credit donations is that they must be in the
form of a cash donation. Donations “in-kind” typically don’t qualify for the Arizona state tax credits. If you look at the instructions on the Arizona State Tax Form 321, it states, “Arizona law provides for a credit for cash contributions made to certain qualifying charitable organizations (charities).”

Donor-Advised Funds can be used creatively to convert highly appreciated assets into cash donations. In summary, DAFs are a powerful tool for managing client’s charitable giving and potentially avoiding capital gains tax. However, they are complex and not suited for everyone.

Since I am a tax and financial professional, I can consult you regarding recommendations to Donor-Advised Funds that may suit your unique situation. For more information, please feel free to contact either of my offices. Prescott (928)778-7666 or Scottsdale (480) 994-7342.


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