October 8 is DAF Day, a day dedicated to celebrating the impact of donor-advised funds and encouraging people to put their charitable dollars to work.
If you’ve heard the term “DAF” but aren’t quite sure what it means, you’re not alone. The good news? It’s much simpler than it may sound.
What Is a Donor-Advised Fund?
A donor-advised fund (DAF) is a charitable giving account that allows you to contribute funds or other eligible assets and recommend grants to nonprofit organizations you care about over time.
One of the biggest benefits of a DAF is flexibility. You can make a charitable contribution when it makes sense for you and then decide when and where to recommend grants. Depending on your individual circumstances, contributions may also provide tax benefits, so it’s always a good idea to talk with your financial or tax advisor about what’s right for you.
Why Give Through a DAF?
If you give to charity regularly, a donor-advised fund can make your giving simpler, more flexible, and easier to plan. Instead of making individual charitable gifts from different accounts throughout the year, a DAF gives you one place to organize your charitable giving.
Some of the benefits include:
– Give now, decide later. You can contribute to your DAF when the timing makes sense for you, then recommend grants to nonprofits over time. This gives you more flexibility to be thoughtful about where and when you give.
– Potential tax advantages. Contributions to a DAF may qualify for an immediate charitable tax deduction. Depending on the provider, you may also be able to contribute eligible assets such as appreciated stock, which can offer additional tax advantages. Individual circumstances vary, so it’s always a good idea to consult a financial or tax advisor.
– Keep your giving organized. A DAF can serve as one central place for your charitable giving, making it easier to keep track of the organizations and causes you support.
– Build a longer-term giving strategy. Funds in a DAF can generally be invested for potential tax-free growth, giving you the opportunity to plan your charitable impact over time.
– Make giving a family conversation. Many people use their DAF to involve spouses, children, or other family members in deciding which causes to support, creating an opportunity to share the values behind their giving.
– Put charitable dollars you’ve already set aside to work. If you already have a DAF, those funds have been designated for charitable purposes. DAF Day is a great reminder to recommend a grant and turn those dollars into meaningful impact.
Giving Through Your DAF Is Easy
Already have a donor-advised fund? You can recommend a grant to Working Wardrobes directly through our website.
We’ve created a short video that walks you through the process step by step, so you can see exactly how easy it is to make an impact through your DAF.
Whether you’ve been using a donor-advised fund for years or are just beginning to explore your charitable giving options, DAF Day on October 8 is a great opportunity to learn more and consider how your charitable dollars can make a difference.