Donor Advised Funds, or DAF’s, are restricted accounts that allow you to contribute assets earmarked for charitable giving, take an immediate tax deduction for the gift, then dole out the funds to specific charities in the future.
Ready to contribute to Sound Foundations NW from your DAF?
We use the Chariot app to enable giving from your DAF in just three easy clicks – choose your DAF administrator from the drop-down menu, enter your login info, type an amount and submit, that’s it.
Click the button to get started, and thank you!
Want more info on Donor Advised Funds?
Our good friends at Brighton Jones financial advisors offer up this quick intro on their blog:
How Donor-Advised Funds Work
- You contribute to a DAF, which has 501(c)3 tax status, so you receive the tax deduction right away. At institutions like Fidelity Charitable, accounts can be started without a minimum donation, require no minimum balance, and can be opened in about a day if you’re donating cash. Community Foundations often require a higher starting balance and charge slightly higher administration fees, but include services that connect donors more closely with their local non-profit and philanthropic community.
- Your irrevocable contribution can include cash, appreciated stock, real estate, cryptocurrency, and many types of marketable securities, that can be invested for tax-free potential growth once settled into the giving account. Note: Any investment assets used to fund a DAF can be transferred in-kind and will not be subject to Capital Gains. All positions are converted to cash once received into the DAF account.
- Assign your DAF a name and identify any successors or beneficiaries to the account.
- At any future point, designate funds from your DAF account to any of thousands of qualified non-profits. If you have charities you already support, you can begin granting right away. If you need time to figure out where you want the money to go, that’s fine as well.