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Donor Advised Funds

 "I wondered why somebody didn't do anything, then I realized I am somebody." - Unknown

A donor-advised fund (DAF) is like a charitable investment account for the sole purpose of supporting charitable organizations you care about.  Note that contributions to the DAF represent an irrevocable contribution.  Contributions must be made to IRS-qualified public charities.  An important benefit of the DAF is that it allows someone to donate assets to a charity today and receive a tax deduction now, even though the actual funds may not be granted to the final charity until some point in the future.  In the meantime, assets inside the DAF grow tax free. 

Other important benefits: 

  • Generally subject to a low administrative fee and minimum initial charitable contribution 
  • Can accept different types of assets (cash, publicly traded securities, real estate, mutual funds, certain complex assets such as C-Corp and S-Corp shares, and interests in limited partnerships) 
  • Simplified record keeping and tax reporting 
  • A way to engage family members in charitable giving. A way to pass on family values. 
  • Enable giving to favorite charities that cannot accept non-cash donations 
  • Ability to name the donor fund such as in honor or memory of someone or, if desired, a person can give anonymously 
  • A way to minimize taxes, especially when selling higher appreciated assets 
  • Flexibility to change charitable beneficiaries over time 
  • Concerned about the cost and complexity of a private foundation 
  • Donors are able to distribute final grants at death or appoint successor advisors in perpetuity 
  • They can be used in conjunction with other tax strategies 
  • Excellent tool when bunching contributions in order to itemize deductions 

Contact us if you have an

an interest in establishing a DAF.