Showing posts from January 2, 2016

Saturday Finances—Charitable Giving: DAF

Making donations through a charitable fund

one way to give

DAF: Donor-Advised Fund

What is a "donor-advised" fund?
A donor-advised fund is a charitable giving vehicle administered by a public charity that is created to manage charitable donations on behalf of organizations, families, or individuals. 

Schwab, Vanguard, T. Rowe Price & Fidelity all have charitable foundations. 

How does it work?
A donating individual or organization opens an account in the fund and deposits cash, securities, or other financial instruments.
The donating party surrenders ownership of anything that is put into the fund, but retains advisory privileges over how their account is invested, as well as how their account distributes money to charities.

How is it different from donating directly to an organization?
In a donor-advised fund, the donor only advises the sponsoring organization.  The donor does not retain absolute administrative control over its charitable distributions.  The donor states preferen…