A donor-advised fund, or DAF, is a charitable giving vehicle sponsored by a public charity that allows you to make a contribution to that charity and be eligible for an immediate tax deduction, and then recommend grants over time to any IRS-qualified public charity.
When you give, you want your charitable contributions to be as effective as possible. Donor-advised funds are the fastest-growing charitable giving vehicle in the United States because they are one of the easiest and most tax-advantageous ways to give to charity.
When you donate to your donor-advised fund, you're making a tax-deductible donation to the organization sponsoring the fund. But because your account is a donor-advised fund, you advise the organization on how to grant the money out to your favorite charities. Your donation is also invested based on your preferences, so it has the potential to grow, tax-free, while you're deciding which charities to support.
Make a tax-deductible donation
Donate cash, stocks or non-publicly traded assets such as real estate, private business interests and private company stock and get your tax receipt. You’ll also be eligible for an immediate tax deduction.
Support charities you love, now or over time
You can support any IRS-qualified public charity with money in your donor-advised fund. The public charity sponsoring your account will conduct due diligence to ensure the funds granted out will be used for charitable purposes and the grantee is an IRS-qualified public charity.
Grow your donation, tax-free
While you're deciding which charities to support, your donation can potentially grow based on your investment preferences, making available even more money for charities.
Contact Arrow Financial Group to get started today!