What is a Donor Advised Fund?
A donor advised fund (DAF) is a type of giving program administered by a third party that provides you with the flexibility and most favorable tax benefits to easily support your favorite charities. DAFs are designed to manage charitable donations on behalf of an organization, family, or individual and are becoming increasingly popular. They are an excellent way to simplify your charitable giving and facilitate your strategic philanthropic goals. You will receive a tax deduction when you make a contribution of cash, stock, and other assets, and, at a later time, you can grant specified amounts to the charities of your choice.
How it Works
- Find a qualifying third party investment fund, and open up a DAF. Minimums and internal fees may vary, so do your research.
- Contribute appreciated stock, art, real estate, etc. to your DAF for an immediate tax deduction.
- Allocate your money in provided investment pools.
- Recommend grants to qualified public charities of your choice at your own timing.
Key Benefits of Donor-Advised Funds
- Simple – all record-keeping, disbursements, and tax receipts are handled by the DAF sponsor.
- Flexible – timing of your tax deduction can be separate from your charitable decision making.
- No transaction fees – unlike credit cards that charge a transaction fee, 100% of your grant request goes to your charity of choice.
- Tax-efficient – contributions are tax-deductible, and any investment growth in the DAF is tax-free. You can easily donate long-term appreciated securities, eliminating capital gains taxes, and allowing you to support multiple charities from one block of stock. This ensures your full market value of the stocks go to PSC Partners instead of a net tax value.
- Family legacy – a DAF is a great way to build a tradition of family philanthropy.
Donor Advised Fund Widget
For your convenience, we offer the widget below, which will link you directly to three of the top Donor Advised Fund agents. If your Donor Advised Fund agent is not listed, contact them directly.
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