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Smart Giving Through Donor Advised Funds

  • meredith0808
  • Jun 10
  • 2 min read

Updated: Jul 18


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A Donor Advised Fund (DAF) is a charitable investment account established with the exclusive purpose of supporting your preferred charitable organizations.  DAFs offer a strategic, flexible, and tax-efficient approach to philanthropy, making them one of the fastest-growing charitable giving vehicles in the U.S.


Once you establish a DAF account, you may contribute securities, cash, or other assets.  These contributions are irrevocable, meaning they are considered a completed gift for tax purposes, and are designated solely for charitable purposes.


The benefits of a Donor Advised Fund can be substantial:

  1. You may be able to take an immediate tax deduction for the market value of your donation. This allows you to "front-load" your charitable giving in high-income years for maximum tax benefit.

  2. If you donate an appreciated stock or security, you avoid paying tax on the capital gain.  For example, if you donate a stock you purchased for $1,000 that is now worth $2,000, you do not have to pay taxes on the $1,000 capital gain. This helps increase the dollars you have available for charitable giving .

  3. You may invest the funds in the DAF account to grow tax free until you are ready to donate them to an eligible IRS-qualified public charity like BCE. 

  4. Flexible and convenient, DAFs let you separate the timing of your donation from the decision about which charities to support. This is ideal for donors who want to claim a tax deduction immediately but take time to determine where to direct their funds.

  5. Most institutions do not require a minimum to set up a DAF. making it accessible to a wide range of donors.


If you'd like to learn more about how a Donor Advised Fund might work for your situation, Deborah Peri, a Certified Financial Planner and parent in the Burlingame Community, is happy to answer questions and help you understand how this strategy might align with your charitable goals and financial priorities.  She may be reached at 650-517-9511 or debbiep@teamhewins.com.

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