What is a Donor-Advised Fund?
A donor-advised fund (DAF) acts as a charitable giving account for you and your family.
Contribute an initial gift of cash, stock, or other assets to open your DAF and receive an immediate tax deduction. Your charitable assets are invested, creating the potential for you to give more over time.
When you’re ready, you can recommend grants from your fund to support your favorite community initiatives and nonprofit organizations.
We provide administrative support and decades of community expertise to help you maximize your charitable giving and respond to critical, emerging needs in the region.
Benefits of Donor-Advised Funds
DAFs have become one of the most used tools in philanthropy today, because you can:
- Contribute the assets you want to give to your fund, including cash, stock, or complex assets like mutual funds, real estate and more, and receive optimal tax benefits that calendar year.
- Donate appreciated securities to avoid capital gains tax and leverage your contribution for a larger philanthropic impact while also securing a better tax break.
- Leverage our investment expertise to grow your charitable assets over time and strengthen your grantmaking and social good power.
- Actively engage in your grantmaking to support community initiatives and nonprofit organizations when you are ready.
- Opt for privacy by giving anonymously to the causes you care about if you do not want to be identified publicly.
- Connect with charitably minded peers to build lasting relationships through the largest community foundation donor network in the region.
- Access our experienced Giving Team to learn about community needs, regional challenges and impactful nonprofit organizations to guide your grantmaking.
- Receive world-class philanthropy tailored to your unique needs and interests.
- Simplify your giving by utilizing our team to process your grants, maintain historical records of your philanthropy, and provide regular fund statements to make tax reporting as seamless as possible.
- Engage your family in philanthropy to instill lifelong charitable values in younger relatives and set up a framework for multi-generational giving that honors your charitable legacy.
How to Get Started
Starting a DAF is easy.
1. Choose Your Passion
The first step in setting up a DAF is identifying who or what you want to support. Our Giving Team has deep roots in the community and can provide local insights related to regional challenges and critical, emerging needs if you need guidance.
2. Choose What to Give
Almost any kind of asset may be used to start your DAF at SDF, including cash, publicly traded securities, privately held stock, interests in limited partnerships, real estate, life insurance, personal property and private foundation assets.
3. Make your fund endowed or non-endowed
Endowment funds ensure you will make an impact in the region for generations to come. Non-endowment funds are impermanent, so you can immediately grant the entire fund balance.
4. Name Your Fund
DAFs can be named after your family, to memorialize someone special, to recognize your passions, or on behalf of a business or an organization. If you prefer anonymity, you can choose a name that reflects your charitable purpose(s).
5. Sign Your Fund Agreement
Our Giving Team will walk you through the necessary paperwork to finish setting up your DAF and explain investment portfolios and important policies. We will work with you to create a tailored solution that meets your philanthropic goals.
Benefits of Donor-Advised Funds vs. Private Foundations
While private foundations are powerful giving vehicles for individuals and families, starting and maintaining them can be challenging.
Through a DAF, you receive the benefits of a private foundation with less overhead, improved tax deductions, increased grant flexibility and access to local giving experts.
Consider a DAF your Private Foundation Solution. If you already have a private foundation, our Giving Team can help you convert it to a DAF.
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Frequently Asked Questions
Open a Fund Today
Set up a charitable fund that matches your philanthropic goals and personal interests.
Essential Guide to Donor-Advised Funds
DAFs can be one of the best ways to give back to your community and help others. The Essential Guide to Donor-Advised Funds helps you better understand DAFs, their impact and the benefits they can provide for you or your family.
Connect with our Giving Team
Your philanthropy is personal, and we are here to help you by delivering world-class service and promptly responding to your needs.
Our experienced staff understands the technical complexities of charitable giving and helps simplify the process. We are your personal support team here to help you manage your fund(s) and give confidently.
Contact us at (619) 814-1332, email us or submit a Contact Form.