If you’re looking for a convenient and meaningful way to give, a Donor Advised Fund (DAF) is a great solution. DAFs are the fastest growing giving vehicle among donors of all income levels. Whether you’re a seasoned expert in giving or just getting started, learn more below about the advantages of DAF giving and how you can support survivors of gender violence.
What Is a Donor Advised Fund?
A DAF is an account typically managed by a financial institution or community foundation for charitable giving. When you contribute funds to the DAF, you immediately receive the tax deductions and can later recommend grants to nonprofits that the advisor for your account will pay out. Essentially, it’s like a savings account that you can put as much into without a time restriction on when you give it out.
What Are Some of the Advantages of a DAF?
CONVENIENCE
One of the advantages of a DAF is how easy it is to manage all your giving in one place. Instead of keeping track of several donation receipts from multiple organizations throughout the year, you receive one consolidated receipt at the time of your contribution to the DAF. This makes filing taxes a more streamlined process
ACCESSIBILITY
While DAFs used to be associated primarily with high net worth individuals, this is no longer the case. As financial institutions like Fidelity Charitable, Schwab Charitable, and Vanguard Charitable have eliminated account fees and minimum contributions, DAFs have become more accessible than ever. Many DAFs can now be opened for no cost!
Opening a DAF is easier than ever, regardless of your level of giving. If you already have a brokerage account or financial advisor, DAFs are simple to set up. The process can also be done online through many financial institutions.
IMPACT
Donors using a DAF often find that their giving is more intentional. Rather than a one-time gift, donors can view their account through an investing mindset. Using a DAF, you can plan your giving thoughtfully and demonstrate your commitment to organizations like Sanctuary for Families.
DAFs give donors the ability to make gifts at their own pace. While receiving an immediate tax benefit, there is no required timeline for making grants. This gives you time to decide where and when your gift can make the most impact.
Getting Started
By using a Donor Advised Fund, you can streamline your charitable contributions, increase your tax efficiency, and support the nonprofits you care about in a sustainable and impactful way. It’s a win-win for you and Sanctuary.