What is a donor-advised fund (DAF)?

A donor-advised fund, or DAF, is like a charitable investment account for the sole purpose of supporting charitable organizations you care about.

Should you give to a donor-advised fund?

Giving to a donor-advised fund lets the donor take the tax deduction when it is advantageous. For example, a taxpayer can get a tax deduction for a contribution to a donor-advised fund and decide later which charities are the ultimate beneficiaries. Some donor-advised funds process gifts to foreign charities.

How does a donor-advised fund work?

To participate in a donor-advised fund, a donating individual or organization opens an account in the fund and deposits cash, securities, or other financial instruments. They surrender ownership of anything they put in the fund, but retain advisory privileges over how their account is invested, and how it distributes money to charities.