Upon establishment, the donor makes an irrevocable gift to establish the DAF and receives a tax credit for the entire amount donated. The donor then advises the fund manager on the distribution of grants to IRS-qualified, 501(c)(3) organizations from the fund. Donations can be made to any qualifying charitable organization at any frequency. Recurring grants can also be established, and, should they choose, donors can make grants anonymously.
By utilizing a DAF, the donor can take advantage of benefits of “donation bunching” for tax purposes while at the same time is having the flexibility to make charitable donations in varying amounts over several years.
Other benefits include: