What is a donor-advised fund?
A donor-advised fund (DAF) provides donors with a centralized charitable giving vehicle. It allows philanthropically inclined individuals, families and corporations to make an irrevocable charitable gift to a public charity 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 does it work?
- Establish your DAF by making an irrevocable, tax-deductible donation to a public charity that sponsors a DAF program (like a community foundation).
- Advise the investment allocation of the donated assets (any investment growth is tax-free).
- Recommend grants to qualified public charities of your choice.
What are the main advantages of a donor-advised fund?
Simplicity—The DAF sponsor handles all record-keeping, 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
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.
How DAF Donors Help the Sierra
Donor support is the lifeblood of the Sierra Nevada Alliance, so we want to provide you with many options for giving. Your gifts, in any form, allow us to proactively protect this beautiful region, near and dear to us all. Together with you, we are preserving the water, lands, wildlife and communities of the Sierra for future generations. Your generosity from your DAF will allow us to leverage more resources to advocate on behalf of The Range of Light.
*Sponsoring organizations generally assess an administrative fee on the assets in a DAF. These fees vary by the charity that sponsors a DAF program