Donor-Advised Fund (DAF)

What Is a Donor-Advised Fund (DAF)?

A Donor-Advised Fund (DAF) is a simple, flexible, and tax-efficient way for individuals, families, or businesses to support the charitable causes they care about. A DAF works like a charitable investment account: you contribute assets, receive an immediate tax deduction, and then recommend grants from the fund to qualified nonprofits over time.

How It Works

1. Make a Contribution

You donate cash, stocks, cryptocurrency, or other assets to a sponsoring organization (such as a community foundation or a national DAF provider). Once contributed, the assets legally belong to the sponsor, but you retain the ability to advise how they’re granted.

2. Receive an Immediate Tax Deduction

You get a tax deduction in the year you give—even if you don’t distribute the funds right away. This makes DAFs especially useful for tax planning or charitable “bunching.”

3. Grow Your Gift Tax-Free

Your contribution can be invested and grow tax-free, potentially increasing the amount you can give to charity.

4. Recommend Grants Anytime

You can request grants to IRS-qualified nonprofits whenever you choose—immediately or over years. Many donors use DAFs to create an ongoing family giving tradition.

Why Choose a Donor-Advised Fund?

✔ Immediate tax benefits
✔ Flexible timing for grants
✔ Ability to give anonymously, if desired
✔ Investment growth = more to give
✔ Easy record-keeping & administration

Who Should Consider a DAF?

A Donor-Advised Fund is ideal for people who:

• Want to donate appreciated assets without first selling them
• Wish to separate when they receive a tax deduction from when they give to charities
• Prefer a streamlined, low-maintenance approach to philanthropy
• Are interested in involving children or future generations in giving

As with any charitable or financial decision, we encourage you to consult your financial advisor to determine what approach best aligns with your personal goals and circumstances.