Use a DAF to Maximize Your Charitable Contributions

Ed Lindbloom |

If you make regular financial contributions to charitable organizations and want to maximize the funds you already give, donating through a donor-advised fund (DAF) could be an option.

First, let's discuss what a DAF is.

A DAF is a type of investment account that allows you to better support the charitable organizations you already give to. It is a separate fund or account maintained and operated by a 501(c)(3) organization or the sponsoring organization.

Through a DAF, you can contribute cash or other assets, and you may be eligible to take a tax deduction for the charitable contributions you make. Then the funds you gave to the charity can be invested and grow tax-free.

Additionally, a DAF may provide better returns than giving cash directly to a charity. This means that your contributions will go further and your charitable donations continue to serve the organization for longer than if you provided a standard cash donation.

Through a donor-advised fund, your donation is tax-deductible, you can choose who you want to give to and set up recurring donations to make giving to the charity of your choice automatic.

Depending on the donor-advised fund, you can give cash, stocks, mutual funds, bonds and even cryptocurrency. You can donate to a non-profit organization and know that your generosity is helping the organizations you care about and that you're helping make the most of the contributions they receive.

If you're interested in donating to a DAF and would like to learn more, contact the office.