Donor Advised Funds
A donor-advised fund (DAF) is a charitable investment account that allows individuals to contribute money to support charities:
How Does a DAF Work?
After contributing to a donor-advised fund, you will receive a tax deduction for the year the gift is made. Once your contribution is made, the sponsoring organization has legal control over the funds. You, as the contributing donor, can make grant recommendations to the charity of your choice.
What Are the Benefits of a DAF?
Through a DAF, you can put your charitable dollars to work in easy, cost-effective ways. You can enjoy tax benefits while still supporting Friends-Seattle. Additional benefits include:
- Contributions: donors can contribute cash, stocks, real estate, or other assets to a DAF at a sponsoring organization, such as a public charity or community foundation.
- Tax benefits: donors receive an immediate tax deduction for their contributions.
- Investment: the sponsoring organization invests the funds for tax-free growth.
- Recommendations: donors can recommend grants to IRS-qualified charities of their choice.
- Advisory privileges: donors retain advisory privileges over the investment strategy and distribution of funds.
How You Can Support Friends-Seattle with a Donor-Advised Fund
DAF Direct is a service that facilitates grant recommendations from accounts at Fidelity Charitable®, Schwab Charitable®, and the BNY Mellon Charitable Gift Fund®. To do so:
1. Request a grant distribution through your DAF sponsor.
2. Use our EIN #91-2047030