The Donor-Advised Fund is an easy-to-use option that continues to gain popularity for its flexibility. The DAF is maintained by a qualified public charity, while the donor recommends which charities will receive grants. A Donor-Advised Fund allows donors to make additional contributions for additional tax deductions in subsequent years, as well as providing the opportunity to benefit multiple charities or causes that are important to the donor. Donor-Advised Funds are an excellent way to establish a legacy of giving, as they allow donors to include their family members in philanthropy.
A Donor-Advised Fund is established by a donor with a gift of cash or assets. The donor then recommends qualified charities to receive distributions. The assets in the DAF can be managed by an advisor of the donor's choice. The donor may make additional contributions, and will continue to recommend grants for the life of the fund.
Below are a few examples of how Donor-Advised Funds have been used in specific financial strategies.
If you'd like to learn more about Donor-Advised Funds, visit the home of the Renaissance Charitable Gift Fund - a Donor-Advised Fund solution offered by the Renaissance Charitable Foundation.