What exactly is a donor advised fund? Or a DAF?
DAFs are tax-effective charitable giving accounts for individuals that are designed exclusively to invest, grow, and distribute funds to charities for meaningful and lasting impact (according to Vanguard Charitable).
So, why give with a DAF?
A DAF donor (also called an “advisor”) may be a retiree who opened a DAF so that they could continue giving after they stopped working. Or, a DAF advisor may have found a private foundation to be too costly and burdensome, and opted for a lower-cost giving tool with more flexibility. Many DAFs are advised by families who have pooled their charitable resources and view philanthropy as a communal endeavor.
Individuals use DAFs for a variety of reasons, but the common thread is a desire to further one’s philanthropic efforts. Some of the advantages of a DAF are:
1. Convenience:
Instead of having to personally track all their giving, donors can use DAFs as a centralized hub to simplify their philanthropy. One contribution can fund multiple donations to a donor’s favorite charities.
2. Increased giving potential:
Assets in a DAF are invested tax-free, enabling many donors to grant much more to charity over time.
3. Flexibility:
In the wake of a crisis or economic downturn, donors with DAFs can respond quickly. Charitable resources in a DAF are “primed” and ready for rapid disbursal.
(according to Vanguard Charitable)
If you have a DAF and would like to support POM, please fill out the form to let us know! We’ll be in contact with you shortly after receiving your information.