What is a DAF?

A donor advised fund (DAF) is simply a fund set up by a donor and administered by a public charity. A donor can start a DAF and receive an immediate tax benefit that year, and then provide guidance on donations given from the fund to nonprofits for as long as the fund exists, donating more money to the DAF as desired. 

WHy Choose a Donor advised fund

“After setting this up, we discovered how convenient and helpful it has been to us to establish a Donor Advised Fund with the Hastings Community Foundation. It helps us prioritize the several local nonprofits we chose to fund in any given year while also aiding in our annual tax planning process. Our intention is to increase our use of this fund as it has proven to be most helpful in directing our gifts in a timely and efficient manner through the technology that has been recently adopted.”

-Roger and Karen Doerr

DAFs and Bundling

With higher standard deductions for taxes starting in 2018, some donors are choosing to bundle their giving in order to continue giving at the same levels as before. This means donating two- or three-years’ worth of giving at one time, claiming the charitable deduction that year, and then waiting that period of time to donate again.

One way to bundle is by creating a DAF. This gives the person the option to bundle the donation to their DAF that first year and then continue to support their nonprofits every year from the DAF.
 

Types of Gifts

Donate Gifts of Cash
Donors can now deduct up to 60% of adjusted gross income for contributions of cash—up from 50%. If your cash donations exceed that limit, you can carry forward any unused deductions for five years.

Donate Gifts of Appreciated Stock
When you donate stock, you can deduct the full value of the stock at the time you donate it.  

Donate Non-cash Assets
You can also donate other non-cash assets, such as real estate holdings or art collections, and deduct the full market value.

Contact the Hastings Community Foundation for more information about creating Donor Advised Funds or other charitable giving opportunities.