For starters, what is a DAF? It’s an acronym for Donor Advised Fund, a charitable giving vehicle administered by a qualified public charity, like the Stewardship Foundation, for the purpose of managing charitable donations on behalf of an organization, family or individual.
Donors who contribute to the fund get an immediate tax benefit, yet they also retain control over how the money will be invested and how the fund distributes the money over time. It’s like a charitable savings account: a donor contributes to the fund whenever they like and then recommends grants to their favorite charities when they are ready.
If a charity is not talking to their donors about contributing to a DAF, they may be losing out on a huge revenue stream.
Do donors like DAFs?
They sure do! It’s easy for donors and better for the charity. No donor likes to keep a pile of receipts, or scramble to make donations at the end of year along with Christmas expenses. With a DAF, they make “deposits” to their charity fund monthly or so, very much like they make deposits to savings. Their generosity grows over time and allows a DAF-supported charity to look long-term and begin to plan for the future.
Most donors covet their privacy. For example, business owners who contribute to morally ethical causes like pro-life and organizations supportive of traditional marriage between one man and one woman prefer to avoid publicity. Contributing to a DAF does not require disclosure; it opens up new opportunities for donors and charities to come together more easily.
Donors can be sensitive. Many advisors are reluctant to initiate the charitable conversation with their clients out of fear that they may be perceived as imposing their own values on the client or trying to steer them to a specific charity. But discussions centered on a DAF can lead to gifts or bequests that are clearly donor choices.
We want our partner charities to realize that DAFs can accept gifts of privately held stock, real estate, collectibles, and other complex assets.
Not all donors are good candidates for DAFs. We assist our partners to identify those who are. And this time of year, we assist our partners to reach out to donors who are making their end of year charitable decisions.
Do you know someone who would like to make an end of year donation?
Are you a charity that needs our assistance? Our help is a phone call away. Call Jim at 614-800-7985.