All about Donor-Advised Funds (DAFs)
A donor-advised fund (DAF) provides donors with a centralized charitable giving vehicle. It allows philanthropically inclined individuals, families and corporations to make an irrevocable charitable gift to a public charity that sponsors a DAF program and take an immediate tax deduction. Most sponsoring organizations of DAFs accept cash equivalents, securities and certain other assets.
What is a donor-advised fund?
How does it work?
1. Establish your DAF by making an irrevocable, tax-deductible donation to a public charity that sponsors a DAF program (like a community foundation).
2. Advise the investment allocation of the donated assets (any investment growth is tax-free).
3. Recommend grants to qualified public charities of your choice.
What are the main advantages of a donor-advised fund?
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 several charities from one block of stock.
Family legacy—A DAF is a powerful way to build or continue a tradition of family
No start-up costs—There is no cost to establish a donor-advised fund. 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 remain anonymous to the grant recipient.
How DAF Donors Help Senior Dogs in Need
Donor support is the lifeblood of The Grey Muzzle Organization, so we want to provide you with many options for giving. Your gifts, in any form, allow us to transform the lives of senior dogs when they need us most by granting critical, life-saving funds to animal welfare organizations across the country. Together with you, we are changing the narrative on senior dogs. Your generosity from your DAF will push us one step closer to ensuring no old dog dies alone and afraid.
*Sponsoring organizations generally assess an administrative fee on the assets in a DAF. These fees vary by the charity that sponsors a DAF program