Donor-advised funds (DAFs) are charitable giving programs that allow you to combine some of the most favorable tax benefits with the flexibility to support your favorite causes. Simplicity combined with tax benefits!
Contributions to donor-advised funds qualify immediately for maximum tax benefits and the contribution does not need to be distributed within the year to qualify. Flexibility and growth potential! Contributions that sit in the fund grow tax free to support more giving in the future.
DAFs can be a simple way to gift appreciated assets. Many of these funds accept a variety of these gifts and provide all relevant tax benefits. They can simplify the process and deal with the paperwork.
There are typically minimum contribution amounts required however. For example, Fidelity Charitable Giving Account has a minimum contribution of $5,000.
By the way, Charity Navigator now has a DAF widget on oursite. Fidelity built the widget and Schwab DAF is the other participating fund. You can now recommend different organizations directly from our site via the widget (picture below) if you use one of these funds! Also, please remember that CN is a charity too and this is a great way to support us as well!