A donor-advised fund (DAF) provides donors with an easy, centralized, and tax-efficient means of charitable giving. It allows individuals, families, and corporations to make an irrevocable charitable gift to a public charity that sponsors a DAF program and receive an immediate tax deduction. From then on, the chosen DAF sponsor handles all record-keeping, disbursements, and tax receipts. The donor serves as an advisor to the fund and recommends grants to the qualified public charities of their choice.
Contributions are tax-deductible, and any investment growth in the DAF is tax-free. It is also easy to donate long-term appreciated securities, eliminating capital gains taxes and allowing you to support several charities from one block of stock. With no transaction fees or start-up costs, a DAF is a powerful way to build or continue a family legacy of philanthropy.
For more information, please reach out to CRL’s Director of Philanthropy, Hannah Hawley, at hannah.hawley@responsiblelending.org.