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Make a lasting impact with a donor-advised fund. As we head into the fourth quarter of 2022, now is a great time for donors to meet with their financial advisors to review their charitable contributions for 2022. Many donors tend to do a lot of their charitable planning in the fourth quarter of each year, which also tends to be a busy time of year due to the holiday season. A donor-advised fund (DAF) is a charitable giving vehicle that allows donors to make an irrevocable charitable contribution,1 receive an immediate tax deduction, and then recommend grants from the DAF to their favorite charities over time. Donors can contribute to the fund as frequently as they like and recommend grants to charities when it makes sense for them. SEI makes available a DAF called the SEI Giving Fund. The SEI Giving fund is a program offered by Renaissance Charitable Foundation Inc. administered by RenPSG. How does a donor-advised fund work? Donors receive an immediate tax benefit by contributing assets and/or cash to the DAF. If donating appreciated assets (held for more than one year), the donor can deduct the fair market value of the assets, subject to certain limitations,2 and avoid the capital gains tax on appreciated assets. Donor-advised funds are designed to allow donors and their families to meet their philanthropic goals for generations to come. Donating appreciated assets to the SEI Giving Fund Example: You have owned XYZ stock for a long time; it has a fair market value of $15,000 and a cost basis of $5,000. If you were to sell the stock, that would be a $10,000 long-term capital gain and at a 20% tax rate,3 $2,000 in taxes due. • FMV $15,000 • Cost $5,000 • Gain $10,000 * 20% tax rate = $2,000 in tax If you decide to donate the stock to the SEI Giving Fund, the donated stock will be sold and invested into a mutual fund strategy. As a result, you no longer have that tax bill and you receive a $15,000 charitable contribution deduction. You just saved $2,000 in taxes and received a $15,000 charitable contribution deduction. 1 This contribution is final and not able to be changed, reversed, or recovered. 2 For individuals, the maximum income tax deduction when gifting cash to a DAF is 60% of adjusted gross income (AGI) and up to 30% of AGI for contributions of appreciated assets held for more than one year. You may carry forward deductions exceeding AGI limits for up to five years. 3 Showing the highest long-term capital gains tax rate, excluding the 3.8% net investment income tax.

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