Donor-advised funds (DAFs)

A donor-advised fund (DAF) is a charitable account managed by a sponsoring organization such as:

  • Community foundations

  • National philanthropic organizations

  • Faith-based foundations

Donors receive a tax deduction when they contribute to the DAF and then recommend grants to nonprofits over time.

During-Lifetime Gifts

Donors may recommend grants from their DAF to nonprofits as:

  • One-time gifts

  • Recurring gifts

  • Multi-year commitments

After-Lifetime Gifts

Many DAF providers allow donors to name nonprofits as successor or remainder beneficiaries, meaning the remaining account balance is distributed to the organization after the donor’s lifetime.

Pro Tip

Many DAF donors are unaware they can name charitable beneficiaries. Asking this simple question can open the door to meaningful legacy conversations.

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