Many of us save for things that are dear to us, and sometimes, that saving can help us in more than one way! That’s the case with a Donor Advised Fund, or DAF.
A DAF is like a savings account for charitable giving. You can open a DAF with a zero balance, and add to it regularly to build your charitable donation fund. If you open your DAF with a more significant amount, you can realize a tax benefit under certain circumstances.
The funds in your DAF will collect interest and give you more opportunity to give!
Below are some answers to frequently asked questions about Donor Advised Funds. Remember to always discuss financial decisions with a trusted advisor before making a decision.
A Donor Advised Fund, also known as a DAF, is charitable giving account created by an individual or family which is administered by a public charity. That charity may be associated with a bank or other financial institution.
Cash, stocks, and other assets can be contributed to your DAF with an immediate tax benefit. The assets then grow, tax-free, and can be donated to 501(c)3 charities whenever you wish.
Your DAF contribution is generally tax-deductible in the year it is made. For example, if you fund your DAF with $5000 in 2026, you may be able to take a deduction of $5,000 in 2026, even if the donations are spread out over the coming years.
Keep in mind that recent legislation has affected how you may deduct your DAF contribution – this is another reason to consult your financial professional before making any contributions.
Other benefits of a DAF include:
No, you cannot. Once an asset is contributed to your DAF, it must be donated to a 501(c)3. When you decide to give (and, in most cases, where) is up to you, but you cannot withdraw the assets for any purpose other than charitable giving.
The answer to this question depends on the administrator of your DAF. Some cause-based or religiously affiliated DAF administrators only allow donations to aligned charities. You’ll want to check for any limitations to your giving before choosing your administrator.
Yes, if the church or religious charity is a qualified 501(c)3. Gifts are like any other contribution but cannot produce a tangible benefit to you (like seating, tuition, etc.).
To make a gift, you just go to your DAF account’s online portal. You will need the charity or church’s legal name and their Tax ID number. For example:
Dominican Sisters of Peace
EIN: 26-3550703
This also depends on the administrator. There are some providers who do not have a minimum contribution, while others have minimums of $5,000 or more for initial and annual contributions.
This is up to you and the people you choose to be successors. You can choose the charities you want to continue to support with the remainder of your DAF funds, or you can appoint other people to continue making grants.
You can call our Mission Advancement Director Dee Holleran at 614-416-1046, or email Dee at Dee.Holleran@oppeace.org.
It’s so easy to give! Talk to your DAF administrator or complete the form below.
Did you know that nearly $90 BILLION is contributed to Donor Advised Funds every year? But if it’s in the fund, it’s not supporting education, building farms, or supporting service to God’s people.
If you already have a Donor Advised Fund, now is a great time to give to the Dominican Sisters of Peace.