Donor-Advised Fund

What is a Donor-Advised Fund (DAF)?

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 virtually any IRS-qualified public charity.

Donor-advised funds are the fastest-growing charitable giving vehicle in the United States because they are one of the easiest and most tax-advantageous ways to give to charity. As of 2021, there were more than 1.2 million DAF accounts in the United States according to the 2022 DAF Report.

Questions? Contact Carolina Gomez.

How does a DAF work?

You Contribute

You make an irrevocable contribution to the donor-advised fund (DAF) and can take an immediate tax deduction.

Your Assets May Grow

​The charitable assets in the DAF may be invested, and any investment growth is tax-free for you.

Charities Benefit

You recommend grants from the DAF assets to support qualified charities such as PAC.

What are the benefits of creating a new DAF?

  • ​Sustains charitable giving over time, through retirement and beyond
  • Creates a lasting legacy in your family when you later endow your fund
  • Flexible and easy to establish
  • Provides immediate tax deduction in the year your gift is made
  • Reduces capital gains when you donate appreciated assets
  • Invested professionally
  • Grows tax-free for future grants
  • Provides a low-cost alternative to a private foundation
  • Administrative work handled by a fund manager of your choice
  • Ease of tracking all of your giving in one place

Resources to prepare for tax changes scheduled to occur in 2026

More Resources

Pregnancy Aid Clinic and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.