An Effective Way To Give
What Is a DAF?
A DAF is a centralized vehicle for charitable giving that makes it easy for donors to dedicate funds to support their favorite nonprofit organization. It also provides an operationally convenient and tax-efficient method for donors to manage their charitable giving.
With a DAF, charitably inclined individuals, families, and businesses make an irrevocable gift to a public charity that sponsors a donor-advised fund program, and may take an immediate tax deduction. Donors can then recommend grants over time to IRS-qualified 501(c)(3) public charities. DAFs also allow donors to approach their charitable giving thoughtfully by involving other family members or colleagues in their philanthropic decisions. Most DAFs accept donations of long-term appreciated securities and other assets, and donors can advise how the funds are invested, which could potentially allow tax-free growth, and could result in more money for your charity.
How it works
Supporting Charities with a Donor-Advised Fund
Donations – A donor makes an irrevocable, tax-deductible donation to a public charity that sponsors a donor-advised fund program.
Minimum contributions vary by sponsoring charity.
Investments – The donor may advise the investment allocation of the donated assets—any investment growth is tax-free.
Investment options vary by sponsoring charity.
Grants – The donor may recommend grants to qualified public charities of his or her choice.
Grants are made at the direction of the sponsoring charity.