DAFs have become popular in part because of their versatility; allowing donors to give when, what, how, and where is most favorable for them. There are many reasons why donors choose a donor-advised fund as a philanthropic giving vehicle. Charitable giving with a donor-advised fund can be a tax-efficient way to build a charitable legacy. Benefits of a donor-advised fund include:
Contributions via DAFs help donors maximize tax benefits.
Donors can contribute immediately, build a philanthropic strategy and recommend grants when ready.
Charitable assets may grow over time, making more charitable dollars available to nonprofits.
DAFs provide streamlined grantmaking, helping philanthropic dollars reach nonprofits quickly and efficiently.
DAF sponsors handle all due diligence and reporting, simplifying organization and administration.
DAFs can be used to facilitate a charitable legacy, dovetailing conveniently with estate planning.
Donors can choose how they are acknowledged and what personal information they wish to share when making grants from their DAFs.
DAFs can be useful in the development of donors’ philanthropic vision, strategy and philosophy.
DAFs can accept as contributions a wide range of assets such as cash, stock, cryptocurrency and real estate.
Donors can support international charities and NGOs and still being eligible to claim a federal tax deduction.