Tree Lafayette - Tax-Smart Giving

Supporters can also choose to give appreciated stock, grant from Donor Advised Funds, or make a Qualified Charitable Distribution from an IRA. These methods are usually more "tax-smart" than giving cash. Tree Lafayette is a 501(c)(3) non-profit organization. EIN: 35-1896066. Legal name is Lafayette Tree Fund, Inc.

Donor-Advised Fund (DAF)

A donor-advised fund (DAF) is like a charitable investment account that is set up for the sole purpose of supporting charities. Individuals can contribute cash, stocks, or other assets into the DAF and receive an immediate tax deduction. Those funds are invested for tax-free growth. Donors can then recommend grants be made to charities of their choice using money from the fund. Although “recommend” is the industry term for this process, it’s helpful to note that sponsoring organizations rarely decline a donor’s grant wishes. See more information about Donor Advised Funds. Take a free no obligation quiz to see if a donor advised fund might help you, Click here.

How does a donor-advised fund work? 

  1. To establish the fund, an individual makes an irrevocable tax-deductible contribution (cash, stock, real estate, etc.) to a sponsoring organization, community foundation or financial institution. Individuals receive a tax receipt and tax benefits when funds are deposited into their DAF.  There are no limits to the contributions and grants that donors can make.
  2. The DAF sponsoring organization oversees those funds as they grow tax free. 
  3. The assets within the fund now legally belong to the sponsoring organization but the DAF account holder retains advisory privileges over disbursements made from the DAF in addition to the investment strategy.
  4. DAF account holders can recommend single or recurring donations to charitable organizations. Funds in a DAF can only be used to support organizations that are tax-exempt 501(c)(3) and classified as public charities under 509(a).
  5. Once the DAF sponsoring organization approves, the recommended donation is made to the qualified charitable organization, such as "Lafayette Tree Fund, Inc. dba Tree Lafayette".

What are the types of DAF sponsoring organizations?

There are three primary types of DAF sponsoring organizations:

  • Community foundations — independent charitable foundations created for the benefit of residents of a specific area
  • National DAFs — charitable arms of financial services providers, like Fidelity or Schwab
  • Single-issue organizations — institutions that create DAF programs to support a specific identity, faith, or cause

What are the benefits of giving through a donor-advised fund? 

  • Support a charity you believe in through strategic giving, over time.
  • Maintain family involvement in charitable decisions.
  • Create a lasting legacy.
  • Take advantage of immediate tax benefits with the ability to distribute funds later.
  • Consolidate all your charitable giving.
  • Ensure that you meet and/or exceed standard deductions by combining donations of stock to a DAF.

How to donate to Tree Lafayette from a DAF.

DAF Direct enables you to donate to Tree Lafayette directly from your DAF. Click to go to DAF Direct   If your DAF sponsoring organization does not participate in DAF Direct, please have them direct your gift to the address below. 

Lafayette Tree Fund, Inc. dba Tree Lafayette, 1915 Scott Street, Lafayette, IN 47904. EIN 35-1896066.

Please consult your tax advisor, attorney and/or financial planner.

Donating Appreciated Stock

Are you interested in making a charitable gift that may yield double tax benefits and additional savings? If so, a gift of appreciated stock may be the right option for you.

A gift of stock may provide more benefits than a cash gift. When you make a gift of stock to Tree Lafayette, by eliminating the capital gains tax that would be due upon selling the stock, you receive tangible tax-savings and benefits while also supporting trees and Tree Lafayette's mission. A gift of stock may be right for you if:

  1. You are holding stocks that have risen in value. If your stocks are highly appreciated, you may find yourself with a hefty tax bill when it comes time to sell. By using these securities as a gift, you can avoid the capital gains tax on any paper profit.
  • You would like to maximize your deduction while not affecting your liquidity. If you decide to make a gift of stock, you not only retain your cash assets, but you also receive a charitable tax deduction for the full fair market value of the stock that you’ve owned for more than one year. 

Please consult your tax advisor, attorney and/or financial planner.

Qualified Charitable Distribution from Your IRA

Satisfy your required minimum distribution while helping trees and Tree Lafayette's mission.

What is a qualified charitable distribution?

A qualified charitable distribution (QCD) is a distribution of funds from your IRA (other than a SEP or SIMPLE IRA) directly to a qualified charitable organization, such as Tree Lafayette. Because the gift goes directly to the charity without passing through your hands, the dollar amount of the gift may be excluded from your taxable income up to a maximum of $100,000 annually, with some exceptions.  If you file a joint return, your spouse can also have a QCD and exclude up to $100,000.  Please consult your tax advisor for information regarding your specific exceptions.

To learn more about QCDs, please visit »

Who can make a qualified charitable distribution?

QCDs can be made by IRA owners who are age 70 1/2 or older.

Many individuals who are required to take money from their IRA but do not need it for living expenses can chose to make QCDs from their IRAs to support the work of Tree Lafayette. This may make sense for your situation.

To learn more about eligibility, please visit »

 How do I make a qualified charitable distribution to Tree Lafayette?

Your QCD must be made directly from your IRA custodian to Tree Lafayette on your behalf.

Please direct your gift to the address below. 

Lafayette Tree Fund, dba Tree Lafayette, 1915 Scott Street, Lafayette, IN 47904. EIN 35-1896066

Please consult your tax advisor, attorney and/or financial planner.