What are the benefits of a DAF?

Donor advised funds (DAFs) are both a flexible and efficient way to organize your charitable giving.

These charitable accounts empower you to give as often as you wish to the nonprofits you care about. What better way for nonprofits to benefit from these timely gifts! Choose a name, fund the account and let this be your personal vehicle to support community efforts that align with your values, goals and charitable vision.

Opening and contributing to a fund: A DAF has no start-up cost for the donor. You can contribute a wide range of assets including cash, and non-cash assets such as stock, mutual funds, real estate and cryptocurrency to open your fund. Gifts to a DAF are generally tax-deductible at the time of the contribution or may have other tax advantages.

Making grants to your favorite charities: Once a fund is established, you can recommend grants to qualified nonprofits at any time. By partnering with a community foundation for your charitable giving, you can hand off administrative, investment management and fiduciary responsibilities. You also may remain anonymous for some or all grants, if you prefer.

Creating a legacy of giving for the next generation: In addition, DAFs provide a means to engage multiple generations of your family in being community minded. You can name children or grandchildren as successor advisors on your fund to carry your giving legacy beyond your lifetime.

Donor-advised funds (DAFs) can be a tax-advantageous way to give. If you have a donor-advised fund with any provider, please consider making a distribution to Upper Valley Haven.