Start Your Legacy Now

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A donor-advised fund, or DAF, is a special account that allows you to make contributions to that account and be eligible for an immediate tax deduction, and then recommend grants over time to any IRS-qualified public charity. Think of it as an “IRA” for charitable contributions; you receive a tax deduction in the year you make the contribution, but you can make the donation (e.g., “distribution”) many years later.

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Key features related to a DAF:

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• Minimize capital gains taxes through contributing appreciated assets held for one year or more.

• Unlock illiquid assets such as real estate, private equity, and other appreciated assets and investments in support of charitable-giving and estate-planning goals.

• Receive a same-year tax deduction on contributions to the account with the option of recommending grants to charities over time.

• Build a legacy of giving by involving family members in grant recommendation decisions.

 

Individuals, organizations, or businesses can open an account with a minimum of $5,000. After the initial contribution, they may make contributions of $500 or more at a time. Grants as small as $50 can be made to the charitable organization of their choosing. For tax purposes, contribution acknowledgements are mailed for each contribution.

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The fair-market value (FMV) of a donation that has been held for more than one year is as follows:

• 50% of adjusted gross income (AGI) for cash

• 30% of AGI for publicly-traded securities

• 30% of AGI for real property and privately held interests

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