What is a Donor Advised Fund?
With a donor advised fund, you make tax-deductible charitable contributions immediately, without having to identify nonprofit beneficiaries right away. Instead, your gifts are invested, based on your preferences, so that they may grow. Once ready, you can recommend grants from your fund to your desired, eligible nonprofits.
You can think about a donor advised fund (DAF) as an investment account for organizing your personal charitable giving.
Donor Advised Funds Make Giving Easy
Instead of writing lots of checks to multiple individual nonprofits, you can make one or more larger contributions to your DAF. Then decide on the nonprofits you want to support.
The difference between using your personal checking account for giving and a donor advised fund is that contributions to a DAF are irrevocable gifts to public charity.
Based on your recommendations, grants are approved by The Foundation's Board of Directors and sent to qualifying nonprofits in the name of your fund (or anonymously if you choose). Funds are often named for families or individuals (e.g., the Smith Family Fund or the Jane Smith Memorial Fund) or for other positive associations (e.g., the Elm Fund).