Donor Advised Funds (DAF)
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What is a "Donor Advised Fund (DAF)?
A Donor Advised Fund (DAF) is a philanthropic giving vehicle administered by a public charity that allows donors to make charitable contributions, receive immediate tax benefits, and recommend grants to qualified charitable organizations over time.
- A Donor Advised Fund (DAF) is a charitable giving account established and managed by a sponsoring organization, typically a public charity, community foundation, or financial agency like a brokerage or investment firm.
- Donors contribute assets such as cash, securities, or other appreciated assets to their DAF account, receiving an immediate tax deduction for the full value of the contribution in the year of the gift.
- The donor retains advisory privileges over the distribution of funds from the account and can recommend grants to qualified charitable organizations at any time.
- DAFs offer donors flexibility in timing their charitable giving, allowing them to contribute assets to the fund when it's most advantageous for tax planning purposes and distribute grants to charities over time.
Benefits from a Donor Advised Fund (DAF):
- Immediate tax deduction: Donors receive an immediate income tax deduction for the full value of contributions to their DAF account, potentially reducing taxable income in the year of the gift.
- Simplified giving: DAFs streamline the charitable giving process by consolidating contributions into one account and providing a single source for managing charitable donations.
- Investment growth: Assets in a DAF can be invested for potential growth, allowing donors to maximize the impact of their charitable contributions over time.
- Privacy and flexibility: Donors can choose to remain anonymous when making grants from their DAF account and have the flexibility to recommend grants to charitable organizations of their choice on their own timeline.
How your donation will benefit the SMA community
- Basic research to pave the way for new SMA muscle treatments and a cure
- SMA advocacy initiatives like caregiving access and transportation
- Improving standardized care for every person with SMA
“If it weren't for Cure SMA, we might not have the treatments in place that have helped my daughter to thrive while living with SMA. I'll forever be grateful and do what I can to support Cure SMA."
How a Donor Advised Fund Works
Donors contribute assets, such as cash, securities, or other appreciated assets, to a Donor Advised Fund account administered by a sponsoring organization, such as a public charity or community foundation. The donor receives an immediate tax deduction for the full value of the contribution in the year of the gift. The donor retains advisory privileges over the distribution of funds from the account and can recommend grants to qualified charitable organizations at any time.
When making a gift through a donor advised fund, please consult with your donor advised fund sponsoring organization, tax advisor, and legal advisor on their proper use. Cure SMA cannot provide tax or legal advice. Donor advised funds cannot be used to cover the cost of any portion of an auction purchase or any portion of the cost of attendance at an event. Donor advised funds may only be used for sponsorships for an event where no goods and services are provided, and the sponsorship is fully tax deductible.
Managed by a public charity, such as a community foundation, and open to contributions from multiple donors. Public charity DAFs typically offer a range of investment options and grantmaking services.
Established by a private foundation to facilitate charitable giving and offer donors similar benefits to a traditional DAF. Private foundation DAFs may provide greater control over investment decisions and grantmaking strategies.
Contact Us
If you have any questions, would like further information, or want help making your contribution then please contact us at [email protected] to get started.
Legacy giving typically takes many conversations and is not a fit for everyone. Conversations with Cure SMA about planned giving should be considered general in nature and intended to be used for informational purposes only. It should not be relied upon as legal, tax, accounting, or other professional advice. To determine how a gift or estate planning decision might affect your circumstances, it is expressly recommended that you consult an attorney, financial advisor, or other qualified professional.