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Donor Advised Fund

What is a Donor Advised Fund?

A Donor Advised Fund (DAF) is a way for you to give to the charities you love over time. A donor advised fund is a program of a public charity that is often described as functioning like a charitable checking account that can be used solely for charitable giving. A DAF is a fund established with a custodial organization (public charity) and once you contribute to the fund, you can make charitable gifts directly from the fund over time. You are entitled to take a federal income tax deduction at the time you contribute to the DAF. You are not eligible for a tax deduction for the charitable gifts that are made from the DAF.

Flowchart: You transfer stock or cash to a donor advised fund and the donor advised fund makes charitable distributions to the charities of your choice.

Benefits of a donor advised fund

  • It is a flexible vehicle for annual charitable giving
  • A DAF is a more tax and cost efficient alternative to a private foundation
  • You obtain a charitable income tax deduction in the year of your gift
  • You can make a gift of one large asset to fund multiple charitable organizations

How a donor advised fund works

  1. You make an initial, irrevocable gift of cash or stock to fund a DAF at a sponsoring organization
  2. The assets in your DAF grow tax-free
  3. You make recommendations on charitable gifts to be made from your DAF
DAF Brochure

Next Steps:

  1. Contact UIndy's Office of Gift Planning at 317-791-2553 or [email protected] for additional information on DAF gifts or to speak with Darcy about which asset gift is right for you.
  2. Seek the advice of your financial or legal advisor.
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