Donor Advised Fund (DAF) Giving
What is a donor advised fund?
A donor advised fund (DAF) is a type of giving program that allows you to combine the most favorable tax benefits with the flexibility to support your favorite charities easily. An increasingly popular charitable vehicle, DAFs are an excellent way to both simplify your charitable giving and facilitate your strategic philanthropic goals.
How does it work?
- Establish your DAF by making an irrevocable, tax-deductible donation to a public charity that sponsors a DAF program
- Advise the investment allocation of the donated assets (any investment growth is tax-free)
- Recommend grants to qualified public charities of your choice
If I have a DAF, how do I use the DAFDirect form?
(located to the right)
- Select the sponsoring organization from the “Donate now from” field.
- Specify General Operating, Stars Gala, or a specific REACH program or event in the “Designation” field.
- Enter the amount (in dollars) you would like to recommend in the “Amount” field.
- Click on the “NEXT” button to proceed to the sponsoring organization’s website to complete your donor advised fund transaction. Please note, you will be directed to an external website to complete your transaction.
What are the main advantages of a DAF?
- Simplicity – The DAF sponsor handles all record-keeping, disbursements, and tax receipts.
- Flexibility – Timing of your tax deduction can be separate from your charitable decision making.
- Tax-efficiency- Contributions are tax-deductible and any investment growth in the DAF is tax-free. It is also easy to donate long term appreciated securities, eliminating capital gains taxes and allowing you to support multiple charities from one block of stock.
- Family legacy – A DAF is a powerful way to build or continue a tradition of family philanthropy.
- No start-up costs – There is no cost to establish a DAF. However, there are often minimum initial charitable contributions to establish the DAF (typically $5,000 or more).**
- No transaction fees – Once approved, 100% of your recommended grant goes to your qualified public charity of choice. **
- Privacy if desired- Donors may choose to be acknowledged or remain anonymous.
** Sponsoring organizations generally assess an administrative fee on the assets in a DAF. These fees vary by sponsoring organization.
Whom should I contact with questions regarding giving to REACH through a DAF?
Additional questions about making a gift to REACH through a DAF should be directed to our Director of Development at 781.891.0724 x109.