Donor Advised Fund (DAF)
A Donor Advised Fund is like a charitable giving account that can simplify your giving. It can distribute gifts to the charities of your choice during your lifetime and even help your children carry on your legacy of giving after you are gone.
Are you looking for a way to benefit California Baptist University both now and in the future? Would you like to simplify your annual and lifetime charitable giving? A donor advised fund (or DAF) might be a great solution for you.
Benefits of a donor advised fund
- Establish a flexible vehicle for annual charitable giving
- Benefit from a more tax and cost efficient alternative to a private foundation
- Obtain a charitable income tax deduction in the year of your gift
- Receive an estate tax deduction and savings from your gift
What is a donor advised fund (DAF)?
A Donor Advised Fund (DAF) operates like a charitable bank account. You can make a contribution of cash, appreciated assets, or other non-traditional gifts into your DAF and receive an immediate charitable income tax deduction. Once the fund is established, you can then recommend grants to the charities you support on your timeline. Your children can also carry on your legacy of giving after you are gone.
Donor advised fund video
How a donor advised fund works
- You make an initial, irrevocable gift of cash, stock or other appreciated assets to fund a DAF at a donor advised fund provider (such as a foundation or most major banks or investment firms).
- The assets in your DAF grow tax-free so you can give more.
- You make recommendations on gifts to be made from your DAF to support the charities of your choice when you are ready.
- You can also designate someone, like your children, to recommend charitable gifts from your DAF after you're gone.
- You can even designate a charity as a beneficiary of your DAF, like you would for a retirement account or life insurance policy.
More on donor advised funds
A donor advised fund has several advantages when compared to a private foundation. The start-up time and cost are minimal for DAFs, and gifts to DAFs are generally deductible at fair market value. A DAF is also not subject to the distribution requirements and certain excise taxes faced by private foundations.
Contact us
If you have any questions about donor advised funds, please contact us. We would be happy to assist you and answer any questions you might have.
