Donor Advised Fund

The donor advised fund (DAF) is often used by cost conscious donors or by donors who wish to maximize their current income tax deductions. It is a gifting vehicle created with a “parent organization” such as a community foundation or another qualified 501(c) (3) non-profit organization. The parent organization provides a document, normally free of charge, in exchange for an irrevocable relationship. While you may choose what charity to support, you have few responsibilities beyond donating funds and suggesting how they are used. The parent organization will provide the investment component (with limited or no input from you), as well as the complete administration of the fund. So you enjoy some of the benefits of a private foundation without the paperwork and startup expenses.

Please contact your financial advisor, CPA, or estate planning attorney to discuss whether this strategy may be beneficial.  For questions, clarifications or if you should choose to give, please call 603-465-7797 or email to contact us.