What are Donor Advised Funds?

• A donor advised fund (DAF) is a specialized financial account used for charitable giving – like a 401K for charity. It allows individuals to make a charitable contribution, receive an immediate tax deduction and then make grants to nonprofits over time.

• The money in a DAF can also grow tax free and be donated at any time in the future – there are no time limits or distribution requirements for DAFs today.

• Anyone can set up a DAF – either through companies that provide banking services (Fidelity, Vanguard, Schwab, etc.), newer startups dedicated to DAFs (Daffy, Charityvest, Groundswell, etc.) or often through local community foundations.