I had heard of these before but wasn’t quite sure how they worked.
I started doing more research and quickly became convinced that I needed to add this tool to my financial life. I just set mine up this past week.
Let me share with you a high-level overview of what these are and how they might benefit you.
What is a Donor Advised Fund?
Let me quote Fidelity Charitable:
A donor-advised fund, or DAF, is like a charitable investment account for the sole purpose of supporting charitable organizations you care about. When you contribute cash, securities, or other assets to a donor-advised fund at a public charity… you are generally eligible to take an immediate tax deduction. Then those funds can be invested for tax-free growth, and you can recommend grants to any eligible IRS-qualified public charity.
This definition gives at least two of t
...