Donor Advised Funds

What is a Donor-Advised Fund (DAF)?

A donor-advised fund (DAF) provides donors with a centralized charitable giving vehicle.
It allows socially-minded individuals, families, and corporations to make a charitable gift to a non-profit that sponsors a DAF program and take an immediate tax deduction. Most sponsoring organizations of DAFs accept cash equivalents, securities, and certain other assets.

 

How Dow it Work?

  • Establish your DAF by making a tax-deductible donation to a public
    charity that sponsors a DAF program.
  • Advise the investment allocation of the donated assets (any investment growth is
    tax-free).
  • Recommend grants to qualified public charities of your choice.

 

Advantages of a Donor-Advised Fund

  • Simplicity—The DAF sponsor handles all recordkeeping, 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.
    philanthropy.
  • 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.

 

Information you’ll need:

  • HelpAge USA Tax ID Number (EIN): 271071179
  • HelpAge USA address: 1730 M Street NW, Suite 1000,  Washington, DC 20036

 

Please don’t hesitate to contact us if you have any questions.

 

*Sponsoring organizations generally assess an administrative fee on the assets in a DAF. These fees vary by the charity that sponsors a DAF program.