Donor-Advised Fund (DAF)

The Donor-Advised Fund is an easy-to-use option that continues to gain popularity for its flexibility. The DAF is maintained by the Renaissance Charitable Foundation, a qualified public charity, while the donor recommends which charities will receive grants. A Donor-Advised Fund allows donors to make additional contributions for additional tax deductions in subsequent years, as well as providing the opportunity to benefit multiple charities or causes that are important to the donor. Donor-Advised Funds are an excellent way to establish a legacy of giving, since they allow donors to include their family members in philanthropy.

How does a Donor-Advised Fund Work?

A Donor-Advised Fund is established by a donor with a gift of cash or assets. The donor later recommends qualified charities to receive distributions. The assets in the DAF can be managed by a professional advisor of the donor's choice. The donor may make additional contributions and will continue to recommend grants for the life of the fund.

Sample Case Strategies

Below are a few examples of how Donor-Advised Funds have been used in specific financial strategies.

Further Information

If you'd like to continue reading about Donor-Advised Funds - including information about Donors and Contributions, Tax Considerations, Investments, and Grant Making - read our program circular here.

View the timelines for different types of charitable contributions here.