Contribution You contribute cash, securities, or other assets to a DAF. Once you donate, you don’t have to grant until you are ready. However, you do get an immediate tax benefit for the donation.
Investment The funds you contribute can be invested, growing tax-free over time. You have the flexibility to recommend how the funds are invested, depending on which philanthropies you want to support.
Granting Over time, you can recommend grants to qualified charities. We handle the administrative work, everything from due diligence on the charities to disbursing the grants.
Is a Donor-Advised Fund Right for You?
Discover a Flexible and Tax-Efficient Way to Manage Your Charitable Giving
A Donor-Advised Fund, or DAF, is a type of charitable giving vehicle that allows individuals or organizations to make a charitable contribution, receive an immediate tax deduction, and then recommend grants from the fund over time.
Immediate Tax Benefits with Flexible Giving:
Maximize Tax Efficiency Receive a tax deduction for the full value of your donation in the year it’s made, grow your funds over time, and then give when the time is right.
Strategic Giving Enjoy the flexibility to spread out your donations over time, allowing you to support causes when it matters most to you.
Create a Lasting Legacy:
Multi-Generational Giving Use your DAF as a tool for estate planning, involving your family in philanthropy and ensuring your values are passed down through generations.
Privacy & Control You can choose to make grants anonymously and recommend when and where your funds are distributed, allowing your giving strategy to evolve over time.
Simplified Charitable Giving:
Centralized Management A DAF acts as a single account for all your charitable donations, simplifying your record-keeping and making it easier to track your impact.
Potential Growth Contributions to your DAF can be invested, potentially growing tax-free, which could enhance the amount available for charitable giving.
What Are the Benefits of a Donor-Advised Fund?
Talk to Your Financial Advisor About a DAF If You:
Had a High-Income Year Offset taxable income from bonuses, business sales, or stock options.
Are Planning for the Future Create a lasting charitable legacy that can involve your family.
Own Appreciated Assets Donate securities or real estate to avoid capital gains taxes and get a full market value deduction.
Give Regularly Simplify and organize your charitable contributions over time.
DAF Statistics
45% of High Net Worth Individuals and 55% of Ultra High Net Worth Individuals have a Donor-Advised Fund because of the tax benefits and ability to make a meaningful impact.
According to the 2023 DAF Report by National Philanthropic Trust:
2 million DAF Accounts in the U.S.
$86 Billion Contributed to DAFs
$229 Billion Held in DAF Assets
$52 Billion Distributed in Grants
23% Increase in DAF Assets YoY
23% Grant Payout Rate
$117,466 Average DAF Account Size