A donor-advised fund (DAF) is a charitable giving account controlled by a Section 501(c)(3) organization. This is known as your sponsoring organization and they control the fund, that you contribute to. You control when the money is distributed and who receives the money, but the fund owns the assets in your account. For example, if you add $10,000 dollars worth of assets to your fund’s account, you would receive $10,000 in charitable deductions that year. Then, you can decide when you want to donate assets from the account. Any assets you don’t distribute continue to grow tax-free, but they are now owned and controlled by the sponsoring organization. Depending on when you distribute your assets and the rate at which your account grows, you will likely be able to donate more than the initial contribution of $10,000.

What can you contribute?

You can donate many types of assets to a … Read More