What Is a Donor-Advised Fund?
A donor-advised fund is a charitable account sponsored by a public charity that donors use to support their philanthropy. Increasingly, DAFs are meeting an important need for people who want to be
thoughtful and systematic about their giving, and who are looking to ways to maximize their philanthropy. From 2008 to 2012, in fact, individual donor-advised fund accounts grew 17 percent.2
ESTABLISHING AND USING A DONOR-ADVISED FUND
Donors make an irrevocable, tax-deductible contribution
of cash, securities, or other assets to the public charity that
sponsors the DAF program. The charity then establishes a
DAF in the donor's name. Donors can make additional
contributions at any time.
Donors advise the DAF program sponsor how they
would like their contributions allocated among various
investment options. Any investment growth is tax-free.
Donors recommend grants from their DAF to other nonprofit
organizations—virtually any qualified 501(c)(3) public charity.