Overview
Donor-advised funds, or DAFs, 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. A DAF is an account that you can deposit funds to so that you can support charitable organizations that you care about.
If you don’t yet have a Donor-Advised Fund, you can set one up through a community foundation such as Silicon Valley Community Foundation or financial institutions such as Fidelity, Morgan Stanley, Charles Schwab, etc.
If you already have a Donor-Advised Fund, you can make contributions from your DAF to Palo Alto Humane directly via your financial institution.
I'd like to make a gift from my dafWhat are some benefits of having a Donor-Advised Fund?
There are several tax and other financial benefits to having a Donor-Advised Fund. Here are just a few:
Immediate Tax Deductions: You can claim a charitable deduction in the tax year you make your contribution to the DAF, even if you do not disburse the money to a specific charity until later.
Avoidance of Capital Gains Taxes: If you contribute long-term appreciated assets—such as stocks, mutual funds, or real estate—directly to a DAF, you generally incur zero capital gains tax while still receiving an income tax deduction based on the asset’s full fair market value.
Flexibility and Simplicity: DAFs allow you to consolidate your charitable giving into one easy-to-manage account. You can grow your donated assets tax-free and recommend grants on your own timeline without the administrative burden of a private foundation.
How does a Donor-Advised Fund work?
Once established, a Donor-Advised Fund allows people to give to charitable organizations by making gifts (or grants). Here’s an example of what that can look like:
Elliott and Audra want to ensure that their favorite animal welfare organization has funds to stay in operation for years to come. They establish a $25,000 Donor-Advised Fund through the same financial institution where they have their retirement accounts.
When they establish their DAF, they receive a federal income tax charitable deduction for the amount they contributed to establish their fund. Now, they have time to consider which charities they wish to support while their fund grows, and they can give to charities from this fund whenever they choose.
After researching and choosing which charitable organizations to give to, Elliott and Audra recommend gifts (also known as grants) to Palo Alto Humane, Boys & Girls Clubs, and a food bank. Each year, they issue grants from their DAF to registered nonprofit organizations of their choosing.
Giving through a DAF offers donors privacy and still lets them establish their communication preferences with their chosen charities.
Make a gift to PAH from your Donor-Advised Fund
Make a Gift from Fidelity Charitable
Make a Gift from Morgan Stanley Gift
Make a Gift with DAFgiving360
Don’t see your community foundation or financial institution listed?
Please visit that organization’s website to make a gift or grant from your DAF to PAH.
If you don’t yet have a Donor-Advised Fund, you can set one up through a community foundation such as Silicon Valley Community Foundation or financial institutions such as Fidelity or Morgan Stanley.
Have more questions about giving from your DAF to Palo Alto Humane? Please reach out to our team at development@paloaltohumane.org.
Want to make a different kind of gift to PAH?
Learn about all the ways you can give to PAH here.