How to set up a donor-advised fund
Setting up a DAF can be as simple as opening an account with a sponsoring organization, such as Fidelity Charitable, Schwab Charitable, or Vanguard Charitable. You typically need to be at least 18 years old and have a U.S. address to establish a DAF. The initial contribution to open a DAF can vary depending on the sponsor, but can be as low as $5,000, says Pirozzolo.
Once you’ve opened the account, you can make contributions to the DAF, invest the money, and then advise the fund on how to distribute the money to eligible charities. You can contribute cash, appreciated securities, mutual funds, or other assets to the DAF. You can also set up recurring contributions to make giving a habit. Pirozzolo says many donors appreciate not having to make a big decision about where their money is going right away.
“That’s really the beauty of the DAF,” she says. “You can be thoughtful, strategic, and intentional about your philanthropy.”
When you’re ready, you can advise the fund to make a grant to an eligible charity. The sponsoring organization will ensure the charity is eligible to receive grants from a DAF and handle all the paperwork. You can also donate anonymously if you choose.
“It’s very easy to use, very intuitive,” says Nash. “The way that we’re presenting the app is the same way that a consumer would expect to interact with a financial services app.”
As you make contributions to your DAF, you can also track your charitable giving and get tax documentation in one place. This can help simplify tax season and ensure you have all the necessary paperwork for your contributions.
“It’s really a seamless experience,” says Nash. “It’s a way to make sure that you’re giving in a way that is tax-efficient but also emotionally fulfilling.”
Whether you’re a seasoned philanthropist or just starting out with charitable giving, a donor-advised fund can be a powerful tool to help you maximize your impact and simplify your giving process. With apps like Daffy making it easier than ever to set up and manage a DAF, there’s never been a better time to explore this option for your charitable contributions.
Arbeitgeber können die Beiträge der Mitarbeiter passend ergänzen oder auch wohltätige Spenden an jeden Mitarbeiter gewähren.
Die Kontomindestbeträge und Gebühren variieren je nach jeder sponsoring Organisation. Neben der Gebühr für das Konto kann es auch eine Verwaltungsgebühr für getätigte Investitionen geben, auf die man achten und berücksichtigen sollte.