More Ways to Give Smart - Donor Advised Funds
Commonly known as a DAF, donors put money into an investment fund with a sponsoring organization such as Fidelity, Schwab, TIAA, Edward Jones, or a community foundation. You, then, recommend grants to a charity in the future. Donors receive an immediate tax benefit, although the money may not go to charity for years.
Donor advised funds became attractive when the standard deduction was raised for income tax purposes. Because it took a much higher amount for a taxpayer to itemize their tax return, donors were not able to use the charitable income tax deduction. By giving a larger amount in one year to a DAF, you can itemize your tax return to take the charitable deduction and recommend grants from it for several years.
DAFs can be funded with securities, cash, cryptocurrency, mutual funds, and other non-cash assets. The sponsoring organization invests your money, allowing your funds to grow over time. It also charges a management fee like other investment managers.
When you want to make a charitable gift from your DAF, you recommend a qualified charity, and the sponsoring organization verifies eligibility and sends the money. And, you can make recurring gifts from your DAF if you want to support the charity on a more regular basis than annually.
Note: When you make a gift from your donor advised fund (DAF), it’s possible that the sponsoring organization (e.g., Schwab, Fidelity, Edward Jones) will not share your information with us.
To ensure your gift is used for its intended purpose and we say thank you, when you make a gift, please send us a note at firstname.lastname@example.org so we know who made the gift.