Donor Advised Funds: More than a Charitable Giving Account

Many tax-savvy, generous givers are looking for a charitable giving account—a tool to make charitable contributions, get charitable tax deductions, and support various nonprofits. This search usually leads them to a donor advised fund. But in reality, a donor advised fund can be much more than just a charitable giving account.

Because the groups that sponsor donor advised funds are nonprofit organizations, giving to establish a donor advised fund creates a variety of opportunities and benefits for you, the donor.

What is a Donor Advised Fund?

You can establish a donor advised fund (DAF) with a qualified 501(c)(3) nonprofit DAF sponsor, like The Signatry, by setting up a fund online and making tax-deductible donations into the fund. Then submit grant recommendations for the nonprofits you are passionate about out of the fund.

Benefits of a Donor Advised Fund as Your Charitable Giving Account

Charitable Tax Deductions

Receive a tax deduction for the year you make your charitable contribution to the donor advised fund. Then recommend grants on your timeline.

Bunch Itemized Deductions

Strategically timing your charitable tax deductions may help you maximize your giving in the long term. You can contribute more than one year’s worth of charitable gifts to a donor advised fund, then recommend grants over time.
Learn more about Charitable Bunching

Donate Stocks

You can donate publicly traded securities—whether stocks, mutual funds, or bonds—to a donor advised fund. Donating appreciated stocks can decrease your taxable capital gains and increase the funds available to go to causes you care about.
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Donate Nonliquid Assets

If you are planning to sell an asset—like real estate or a family business—you may be able to give much more than you thought by donating the asset to a donor advised fund before it sells.
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Simplify Your Tax Receipts

Rather than receiving tax receipts from each nonprofit you supported each year, you can simplify by giving through a donor advised fund – receiving one tax receipt – then recommending grants to different nonprofits.

Give Together

You can add multiple users to a donor advised fund online. Create a collaborative giving pool with family members or friends to plan your giving together.

Grow Your Charitable Contributions Tax Free

Investments within a donor advised fund can grow tax free, enabling your contributions to grow and make an even greater impact.
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