A donor-advised fund (DAF) is a savvy philanthropic vehicle that allows you to transfer a variety of assets into an investment account that is specifically earmarked for charity
As a donor advisor, you can then recommend grants to qualifying charitable organizations from your DAF. The charitable tax deduction eligibility occurs at the time of your assets being transferred into a DAF.
Each DAF provider has different fees, minimums and other rules, but with each type, whether at a commercial provider or community foundation, you can contribute to your fund over time and recommend grants at your discretion, providing flexibility to your giving strategy. Additional benefits of using a DAF include:
· Ability to set up recurring annual, quarterly or monthly grants
· Option to name successor donor advisors (such as children or grandchildren)
· All or part of your DAF’s balance can be gifted to a charitable beneficiary like the Food Bank as part of your estate planning