Donor-Advised Fund (DAF)
A Donor-Advised Fund (DAF) is a charitable giving vehicle that allows an individual, family, or organization to make a charitable contribution, receive an immediate tax deduction, and then recommend grants from the fund over time.
Contributions to a DAF are made through a sponsoring organization, typically a public charity, which manages the fund and its investments. Donors have advisory privileges to suggest how much and when grants should be distributed to qualified charitable organizations, but the sponsoring organization retains ultimate control over the funds.
For example, if a donor contributes $10,000 to a DAF, they can claim a tax deduction for that amount in the year of the contribution. They can then decide over the following years how to distribute that money to various charities, potentially making their contributions more strategic and aligned with their philanthropic goals.
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