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DAF DIRECT & DONOR ADVISED FUNDS

What is a donor advised fund?

donor-advised fund (DAF) provides donors with a centralized charitable giving vehicle. It allows philanthropically inclined individuals, families and corporations to make an irrevocable charitable gift to a public charity that sponsors a DAF program and take an immediate tax deduction. Most sponsoring organizations of DAFs accept cash equivalents, securities, and certain other assets.

How does it work?

  • Establish your Donor Advised Fund 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

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.
**Sponsoring organizations generally assess an administrative fee on the assets in a DAF. These fees vary by sponsoring organization.

 

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FULL FRAME INITIATIVE

The system is rigged, and the solution isn’t just to create more programs for people harmed by these unfair systems. The solution is to reimagine these systems to make our country fairer and more equitable for everyone — which means ensuring that the places where we work, live, play and pray tap into people’s drive for wellbeing, instead of undermining wellbeing for some and enabling it for others.

That’s what we do.

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