Donor Advised Funds
Donor Advised Funds
Donor-advised funds allow you to maximize your giving.
A donor-advised fund (DAF) is a type of investment account that offers flexibility and immediate tax benefits. Contributions to DAF accounts earn tax-free interest and thus increase in overall value until portions are granted to your favorite charities at your recommendation, ensuring your gift to cats is used as efficiently as possible.
Contributions to a donor-advised fund can be deducted from your taxes immediately, even though you may not decide to recommend a grant during that tax period. DAFs increase your giving potential and allow your contributions to grow over time. *
3 simple steps to giving through a DAF
- Open a DAF giving account with the giving fund of your choice.
Fidelity Charitable, Schwab Charitable, Vanguard Charitable, and Raymond James Charitable are some of the most common. - Contribute stocks, bonds, and cash to your account and watch it grow over time.
- Support Alley Cat Allies by recommending a grant through your DAF now or over time.
Frequently Asked Questions
What is a donor advised fund?
A donor-advised fund, or DAF, is an investment account that is used for charitable giving. It is composed of donations made by individuals and administered by a third party. The third party is called the sponsoring organization. A donor-advised fund offers an immediate tax relief and allows you to support your favorite charities immediately or over time.
How does a Donor Advised Fund work?
A donor makes an irrevocable gift to a donor-advised fund and receives a tax deduction for the year the gift is made. Once the contribution is made, the sponsoring organization has legal control over the funds and the donor can make grant recommendations to the charity of their choice.
What are the benefits of a Donor Advised Fund?
- Simple to establish
- Flexible funding options
- Easily accessible
- Tax advantage
- Typically requires no minimum distribution
- Anonymous granting
- Investment options
How do I give to Alley Cat Allies through a Donor Advised Fund?
- Open a DAF giving account with the giving fund of your choice.
Fidelity Charitable, Schwab Charitable, Vanguard Charitable, and Raymond James Charitable are some of the most common. - Contribute stocks, bonds, and cash to your account and watch it grow over time.
- Support Alley Cat Allies by recommending a grant through your DAF now or over time.
*Please consult your independent tax, legal, or financial advisor. Nothing herein should be construed as tax, legal, or financial/investment advice.
