Donor Advised Funds

A donor-advised fund, often abbreviated as DAF, allows you to manage your charitable contributions with ease and flexibility.

A DAF is a tax-free charitable fund for the sole purpose of supporting causes you care about, while also typically granting you tax benefits. As a Donor you control the timing.

Donate contributions to your donor-advised fund. Contributions to the fund are eligible for tax deductions based on the contribution amount, and the date the contribution is made.

Grow the value of the fund by investing to increase your ability to support the causes that matter to you. Funds can be used only for charitable purposes where there is no benefit to the donor. It’s like having a charitable savings account where your contributions can grow tax-free and then be directed as needed when the time is right.

Give, on your schedule, by recommending donations (or “grants”) from the fund to not for profits close to your heart, or to respond to an emergency appeal.

It’s easy to get started, both Fidelity Charitable and Vanguard Charitable offer options for Donor Advised Funds with a low initial commitment.

Many other financial institutions and foundations, including the Delaware Community Foundation locally, can guide you to the correct solution for your giving needs.

Why not look into DAFs as you get ready to make your next gift to improve the community we all share?