Donor Advised Fund (DAF)
A donor advised fund (DAF) is a popular tool for charitable giving because it multiplies gift impact, maximizes tax benefits and simplifies the giving process.
Think of a DAF like a savings or investment account for all of your charitable giving. Instead of writing multiple checks to individual charities, you contribute to your DAF account and receive an immediate tax deduction.
Those contributions are invested and row tax-free. You decide with charities to support and how often.
When you’re ready to make a gift from your DAF, the foundation sends the check to your chosen charity.
Think of a DAF like a savings or investment account for all of your charitable giving. Instead of writing multiple checks to individual charities, you contribute to your DAF account and receive an immediate tax deduction.
Those contributions are invested and are tax-free. You decide what charities to support and how often.
When you’re ready to make a gift from your DAF, the foundation sends the check to your chosen charity.
5 Things to Know about DAFs
- Enjoy Ultra-Flexibility
Contribute cash, stocks, property or other assets at your convenience. - Reap Tax Advantages
Contributions of your DAF are immediately tax deductible. Pay no capital gains tax on donation of appreciated assets (ex: stocks, real estate). - Multiply Your Impact
DAF contributions are invested and grow to maximize impact. All growth is tax-free. - Simplify Your Giving
All charitable giving is channeled through a single fund. When you make a gift, the foundation sends a check and manages the paperwork. Can make additional gifts, monitor your balance/contributions or gift history. - Avoid High Fees
No fees to open an account or process gift requests, no management fees for DAFs invested in select funds. Low management fees for other DAF investment options.