What is a Donor Advised Fund?
- A Donor Advised Fund, DAF, is an account to which an individual can make an irrevocable, charitable contribution of assets and realize immediate tax benefits. The donation can be cash or appreciated securities. The assets in the DAF can be invested and appreciate tax-free. (Investment options depend on the account Custodian.)
- Contributions are seen as a completed gift so the donor gives up ownership of any assets placed in a DAF. However, donors can continue to advise on how the money is invested and recommend grants to their favorite charities.
- DAFs are a solution for donors who wish to remain anonymous, as the donor’s identity need not be revealed when grants are made.