What does DAF mean in FUNDS

A donor-advised fund (DAF) is a charitable giving program that allows donors to make tax-deductible contributions and have these funds invested for potential long-term growth. Donors can then recommend grant distributions from the fund to qualified 501(c)(3) charities of their choice, either now or in the future.

By using a DAF, donors can make larger contributions than they may be able to with other forms of giving and can potentially maximize their tax benefits as well as achieve their philanthropic goals over time.

A donor typically opens his/her own DAF by working with a sponsoring organization such as an investment firm, community foundation or bank. The sponsoring organization establishes specific guidelines and processes for operating the DAF.

Most donors open their own DAF but there are also ways for someone else to contribute to an existing one. Typically, only individuals, couples, families or entities such as trusts or estates are eligible contributors.

Yes, many donors choose to have multiple accounts within their DAF, each with its own unique purpose and mission focus. Donors might want several accounts for different causes such as education and health care; for example, they could create separate funds for scholarships and cancer research initiatives.

The first step is to contact the sponsoring organization you plan on working with so they can explain the process in more detail and answer any questions you may have. They will be able to advise you on the types of assets that can be contributed and what documents need to be returned once your application has been received.

Generally speaking, most assets including cash, securities such as stocks or bonds, real estate holdings or even tangible personal property (e.g., artwork) are accepted into a DAF account but it’s important to check with your sponsoring institution about what types of assets they will accept before moving forward.

Many people use their DAFs as an opportunity to give back to causes they care about most whether it’s supporting local schools or religious institutions; fighting poverty through international relief efforts; protecting animals; promoting public health initiatives; etc.