Donor Advised Fund
A donor-advised fund (DAF) is a type of giving program that allows you to combine the most favorable tax benefits with the flexibility to support your favorite nonprofit organizations easily. An increasingly popular charitable vehicle, DAFs are an excellent way to both simplify your giving and facilitate your strategic philanthropic goals.
Advantages of a DAF
The DAF sponsor handles all record-keeping, disbursements, and tax receipts.
Timing of your tax deduction can be separate from your charitable decision making.
Contributions are tax-deductible and any investment growth in the DAF is tax-free. It is also easy to donate long term appreciated securities, eliminating capital gains taxes and allowing you to support multiple nonprofit organizations from one block of stock.
A DAF is a powerful way to build or continue a tradition of family philanthropy.
No start-up costs
There is no cost to establish a DAF. However, there are often minimum initial charitable contributions to establish the DAF (typically $5,000 or more).*
No transaction fees
Once approved, 100% of your recommended grant goes to your qualified public charity of choice.*
Privacy if desired
Donors may choose to be acknowledged or remain anonymous.
* Sponsoring organizations generally assess an administrative fee on the assets in a DAF. These fees vary by sponsoring organization.
Since the original contribution to the DAF provided the maximum tax deduction, the donor-advisor cannot receive any benefits that would change the value of the tax deduction. However, the donor-advisor can receive benefits that have insubstantial or no fair market value. For more information on donor benefits, please click here.