Photo: African Angels Trust

Donor Advised Funds

What is a Donor Advised Fund?

A Donor Advised Fund (DAF) is a tax-deductible account that is funded by an individual donor, foundation, or corporation. For Donor-Advised Funds held at the AFC, once an account is established, donors may contribute additional funds to their accounts and suggest projects they wish the AFC 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 $5,000 is required to open the account and is the minimum maintained balance.

How does a Donor Advised Fund work?

Donors may contribute 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 approved by the AFC before grants can be made.

Donors who do not want their DAF accounts to be distributed immediately may wish to consider investing their funds. The AFC has contracted with Zevin Asset Management, of Boston, MA, to identify and manage investments in eligible companies with high environmental, social, and governance (ESG) ratings. For more information, please visit Zevin’s website or contact us.

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 further information.

Photo: Ben Dilley