Donor Advised Funds
Donor Advised Funds Overview
Donor Advised Funds (DAFs) provide a simple and flexible way to transfer assets to charitable causes. They allow donors to focus on their giving goals while benefiting from professional administration and investment support.
DAFs can also complement other philanthropic strategies. For example, they can work alongside private foundations—helping to manage anonymous gifts, simplify grantmaking, or handle assets that require unique investment approaches.
By using a DAF, donors can align their charitable decision-making with personal values, optimize tax benefits, and establish a giving strategy that endures over time.
Services for Donors
-
Grant flexibility across multiple charities
-
Simple administration with professional oversight
-
Options for anonymity or recognition
-
Legacy planning and charitable continuity
Resources
-
Learn more about the American Gift Fund
Six Key Factors to Consider
- Tax Options – A DAF allows donors to take an immediate tax deduction while recommending grants over time. The type of asset donated and timing of the contribution can significantly affect deductibility and long-term tax efficiency.
- Cost – Administrative and investment fees vary by sponsor and structure. Keeping costs low ensures that more of your contributions go directly to the charities you care about, rather than being eroded by overhead.
- Control – With a DAF, you decide how involved you want to be in grantmaking and investment oversight. Some donors prefer to recommend grants actively, while others value a streamlined, advisor-supported process.
- Charitable Giving – A DAF can support multiple organizations through a single account, making it easy to manage ongoing donations or plan for future giving. Donors can also schedule recurring gifts to provide reliable, long-term support for their chosen causes.
- Legacy Giving – Donors may use a DAF to create a philanthropic tradition within their family, naming successors to carry on their charitable vision. Alternatively, a DAF can designate specific charities to receive remaining assets after the donor’s lifetime.
- Recognition & Anonymity – DAFs provide flexibility in how gifts are acknowledged. Donors can choose to be recognized publicly for their generosity or remain anonymous, depending on personal preference and the nature of the gift.
Considering a Donor Advised Fund?
A Donor Advised Fund offers peace of mind that your charitable intentions will be carried out effectively and flexibly. Whether your goals are to maximize tax benefits, simplify donations to multiple organizations, or leave a lasting philanthropic legacy, a DAF provides a trusted and adaptable solution.