What is a Donor Advised Fund?
A donor advised fund (DAF) could be best described as a charitable investment account that provides simple, flexible, and efficient ways to manage charitable giving. The money or assets that go into a donor advised fund becomes an irrevocable transfer to a public charity with the specific intent of funding charitable gifts. This public charity serves as the administrator of the DAF.
How a DAF Works
- You make an irrevocable contribution from your personal assets. We accept as little as $25,000 as an initial contribution.
- You immediately receive the maximum tax deduction allowed by the IRS.
- Name your DAF account, advisors, and any successors, or charitable beneficiaries.
- AEF places your contribution in a donor advised fund account which your financial advisor can manage.
- Afterward, on your own timetable, you can recommend grants to qualified charities and nonprofit organizations.
Think of it as a Give-Grow-Grant process.
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