A donor-advised fund (DAF) is a charitable giving vehicle administered by a sponsoring organization and created for the purpose of managing charitable donations on behalf of an organization, family, or individual. It allows donors to make a charitable contribution, receive an immediate tax benefit and then recommend grants from the fund over time.
How Does it Work
Establish your DAF by making an irrevocable, tax-deductible donation to a public charity that sponsors a DAF program. Advise the investment allocation of the donated assets and note any investment growth is tax-free. You recommend the grants to qualified public charities of your choice.
Main 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.
* Sponsoring organizations generally assess an administrative fee on the assets in a DAF. These fees vary by the charity that sponsors a DAF program.
If you have a donor-advised fund with a sponsoring organization, please consider making a distribution to The Foundation for Barnes-Jewish Hospital or listing us a final beneficiary. You may request an immediate distribution or make a grant recommendation utilizing the DAF Direct tool below.
DAF Direct enables you to recommend grants to the Foundation, directly from your DAF (as long as your DAF's sponsoring organization is participating). The following organizations are currently participating via the DAF Direct widget: Fidelity Charitable, Schwab Charitable and BNY Mellon. Neither you nor the Foundation will incur any download or transaction fees.
If you have a question about your gift, call 314-286-0445 or email [email protected].