What is a Donor-Advised Fund?

A donor-advised fund, or DAF, is a tax-favored charitable giving method that allows donors to make a contribution (i.e. cash, securities, precious metals, collectibles, etc.) into a personalized tax-deferred account, allowing the donor to receive an immediate tax deduction, while maintaining control of the charity selections and the annual gifts granted over time.

Unlike forming a traditional private foundation, the day-to-day operations of the DAF are administered directly by IACF. This allows donors to have the benefits of a private foundation, while saving administrative time and expense in functional duties of grant giving and performance evaluation.

DAF’s can also offer an additional tax benefit for gifted appreciated assets. The capital gains taxes that would have been assessed at the time of sale are eliminated when the asset is transferred into the DAF account.