DAF Donations

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What is a donor-advised fund?

How does it work?

  • Establish your DAF by making an irrevocable, tax-deductible donation to a public charity that sponsors a DAF program
  • Advise the investment allocation of the donated assets (any investment growth is tax-free)
  • Recommend grants to qualified public charities of your choice

What are the main advantages of a donor-advised fund?

Simplicity: The DAF sponsor handles all record-keeping, disbursements, and tax receipts.

Flexibility: Timing of your tax deduction can be separate from your charitable decision making.

Tax-efficiency: 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 charities from one block of stock.

Family legacy: 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 donor-advised fund. 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 remain anonymous to the grant recipient.

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