A Donor Advised Fund (DAF) works like a charitable bank account. You make an initial contribution to establish a fund, using gifts of cash, and/or appreciated publicly traded securities, and/or closely-held stock. The funds deposited into your individual account are carefully invested by The Fund for Philanthropy, and the net income is credited to the your personalized DAF, similar to a mutual fund.
As a donor advisor, you can recommend charitable contributions from your DAF to non-profit organizations of your choice throughout the year. Contributing to a DAF allows you to enjoy the tax advantages, while minimizing the detailed administration and regulation of the gifting process.
Here are the forms you’ll need to open your account:
* All money and property transferred to The Fund For Philanthropy shall be an irrevocable gift to the charity. The charity shall hold, manage, invest and reinvest the Fund, shall collect the income and shall pay and disburse the net income and principal therefore exclusively for general charitable uses and purposes, in accordance with the provisions specified in the Articles of Incorporation of the charity. The Articles of Incorporation have been adopted by the Board of Directors of the Charity, and their provisions, as they may be amended from time to time, are hereby incorporated by reference and conclusively assented to and adopted. The phrase “charitable uses and purposes” shall be defined as all of those activities, uses and purposes described in Section 501(c)(3) of the Internal Revenue Code of 1986 (the “Code”).