What is a Donor Advised Fund?

A donor advised fund (DAF) is a type of giving vehicle that allows donors to combine favorable tax benefits with the flexibility to easily support their favorite charities. DAFs are an excellent way to both simplify charitable giving and facilitate strategic philanthropic goals. As an alternative to creating a private foundation, DAF donors enjoy administrative convenience, cost savings and tax advantages.

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Contributions to a Foundation DAF are irrevocable and therefore, immediately tax deductible.  These donations can be made when convenient for the donor from a tax or financial planning perspective. Grant recommendations from the DAF to other IRS qualified public charities can be made at any time which satisfies the donor's charitable mission. 

A Perpetual DAF is designed to retain principal with earnings available for distribution.  A Flexible DAF allows for the distribution of both earnings and principal as desired.

Through an agreement with the Foundation, DAF donors can make recommendations regarding the DAF name as well as grant recipients, amounts and timing of grants distributed.  In addition, a DAF enables donors to build an ongoing tradition of family philanthropy.

What are some reasons for setting up a Donor Advised Fund?

Here are the Top Four Reasons why a donor would set up a Donor Advised Fund (DAF)

  1. Better organized and able to keep a record of giving
  2. To give the donor time to decide where to give
  3. Immediate tax deduction
  4. Able to donate appreciated assets

Here are comparative reasons for opening a Donor Advised Fund with the Foundation for the Arlington Diocese.

Please contact our office if you would like additional information or if you have any questions. 

What is the first step to set up a DAF?

Once you are ready to set up your DAF, our office can provide you with the necessary paperwork and support.