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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 fund.

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 gifts of real estate 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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