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What is a donor-advised fund? It can be helpful to think of DAFs as similar to a 401(k), health savings account, or 529 account, says Amy Pirozzolo, head of donor engagement at Fidelity Charitable.
When the owner of a donor-advised fund makes a gift to the fund, it can create an immediate tax deduction to apply against current income. The deduction for a gift made in cash is limited to 60% ...
The donor-advised fund is one of the most tax-efficient ways to donate money to charity, which has helped it become the fastest-growing charitable giving vehicle in the U.S., according to Fidelity ...
A donor-advised fund has some disadvantages compared to a private foundation, and some advantages. Both can accept donations of unusual or illiquid assets (e.g., part ownership of a private company, art, real estate, partnerships or limited partnership shares), but a donor-advised fund has higher deductions for these gifts (depending on the gift).
NPT began tracking data on donor-advised funds in 2007, using filings from all charities that complete the IRS 990. The report is an analysis of trends in the data. Key metrics include the number of individual donor-advised funds in the U.S., total dollars granted from them, total contributions to them and total charitable assets in them. [12]
A donor managed investment account (or DMI account) is a charitable giving mechanism in which donors receive a full tax deduction at the time they fund the DMI account, but retain investment management rights over the account, and can request donations from the account to charities.
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