A Donor-Advised Fund (DAF) is a specialized, tax-advantaged account that allows individuals, families, or organizations to make a charitable contribution, claim an immediate federal income tax deduction, and then recommend grants from the fund to their favorite charities over time.

 

Administered by a public charity - such as a community foundation or the charitable arm of a financial institution - a DAF allows the contributed assets (which can include cash, stocks, or cryptocurrency) to be invested and grow tax-free, maximizing the potential impact of the ultimate donations. It essentially functions like a private foundation but with significantly lower administrative costs, fewer regulatory burdens, and greater privacy for the donor.

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Ready to set up a Donor Advised Fund? Visit the organizations we recommend below to get set up.