What are the benefits to adding family members to my Donor Advised Fund (DAF)?

Including family members in a DAF account encourages shared values and a tradition of giving. It allows children and grandchildren to participate in charitable decisions, fostering a sense of responsibility and a commitment to philanthropy.

A DAF can serve as a tax-efficient way to involve family members in charitable giving. Contributions are immediately tax-deductible, and assets in the fund grow tax-free. By involving family members, you create a structured way to distribute wealth while avoiding estate taxes.

By adding successors or co-advisors, families can ensure continuity in their charitable efforts. This allows multiple generations to participate in directing grants and maintaining a philanthropic mission that aligns with family values over time.

A DAF enables family members to work together on selecting charities, evaluating impact, and making strategic donations. This enhances collaboration and can help align giving with broader family wealth planning and social impact goals.

Instead of managing multiple individual donations and tax receipts, a single DAF account consolidates family giving. This simplifies record-keeping and ensures a more structured approach to philanthropy.

DAFs allow flexibility in defining roles. Parents can retain primary advisory roles while gradually involving children or designating them as co-advisors or successors. This helps transition responsibility over time while maintaining oversight.

Involving younger family members in a DAF provides an opportunity to educate them about charitable giving, investment management, and financial stewardship. This hands-on learning experience helps build a stronger understanding of philanthropy and wealth management.

Charitable giving can be a unifying experience, bringing family members together around shared causes and values. It creates meaningful conversations and strengthens relationships across generations.