Photo: African Angels Trust

Donor Advised Funds

Why a donor advised fund might be of interest to you.

What is a Donor Advised Fund?

A Donor Advised Fund is a tax-deductible account that is funded by an individual donor, foundation, or corporation. For Donor-Advised Funds held at an intermediary organization, once the funds are established, donors may contribute additional funds to their accounts and suggest projects they wish the intermediary to support at any time.

How can I set up a Donor Advised Fund?

Creating a Donor Advised Fund with the AFC requires an application. Once an application is approved, typically within two months, the account will be available to the donor. An initial deposit of $5,500 is required to open the account. This covers a one time-set-up fee of $500 and establishes the minimum fund balance of $5,000.

Donors may name their accounts as they wish; however, the American Fund for Charities reserves the right to refuse a name if in the view of the Board the name is inappropriate.

How does a Donor Advised Fund work?

Donors may add to their Donor Advised Funds with any amount at any time. Gifts to Donor Advised Funds are tax deductible to the extent permitted by law. Tax deductions may be taken only for the year that the gift is made. Donors may suggest grant recipients at any time; however, suggested charities must be successfully evaluated by the AFC before grants can be made.

Benefits:

A Donor Advised Fund (DAF) enables convenient and flexible support of diverse charities.

Fees retained for DAF accounts are generally lower than fees retained for single gifts.

Tax-benefits apply the year funds are contributed to DAF accounts.

Additional reporting:

The AFC can provide additional income and expenditure reporting on beneficiary activities and project finances when requested.

Please contact us for costs and further information.

Photo: Ben Dilley