Donor-Advised Funds (DAF) Frequently Asked Questions
What is a Donor-Advised Fund?
A donor-advised fund (DAF) is like a charitable investment account designed for one purpose: giving. You contribute cash, stocks, or other assets to your fund, receive an immediate tax deduction, and your funds can grow tax-free. Then, whenever you’re ready, you recommend grants to the charities and causes you care about most.
How does a DAF work?
It’s a simple three-step process:
Contribute: Donate cash, appreciated stocks, or other assets to your DAF account.
Grow: Your contribution can be invested and grow tax-free, increasing your charitable impact over time.
Grant: Recommend grants to eligible nonprofit organisations whenever you choose, on your own timeline.
What are the tax benefits of a DAF?
When you contribute to a DAF, you’re eligible for an immediate tax deduction in the year you make the contribution, even if you distribute the funds to charities in later years. Donating appreciated assets like stocks may also help you avoid capital gains taxes, allowing more of your money to go toward the causes you support. (Please consult your tax advisor about your specific situation.)
What is Diaspora Impact DAF?
Diaspora Impact DAF, powered by Charityvest, is a donor-advised fund designed to make giving simple, flexible, and impactful. It allows you to support the causes and communities that matter most to you, all from one convenient account.
How do I open a DAF account?
Opening your account is quick and easy. Click “Open Your DAF Account Now” to get started with Diaspora Impact DAF, powered by Charityvest. There is no minimum contribution required to open an account.
How do I recommend a grant?
Once your account is open and funded, simply log in and recommend a grant to the nonprofit of your choice using the organization’s legal name, address, and EIN. Our EIN is 92-0752804.
What assets can I contribute to my DAF?
Most DAFs accept a variety of assets, including:
- Cash and checks
- Publicly traded stocks and securities
- Mutual fund shares
- Other appreciated assets (depending on the fund sponsor)
- Contributing appreciated assets held for more than one year is often the most tax-efficient way to give.
Can I remain anonymous when giving through a DAF?
Yes. When you recommend a grant, you can choose whether to share your name and contact information with the receiving organization or give anonymously.
Who legally controls the funds in my DAF?
When you contribute to a DAF, your gift becomes an irrevocable charitable contribution legally controlled by the fund sponsor. As the donor, you retain advisory privileges, meaning you recommend how the funds are invested and granted and sponsors honor these recommendations for grants to eligible charities.
Why give through a DAF instead of donating directly?
Immediate tax deduction with the flexibility to give over time
Tax-free growth means potentially more money for charity
Simplified record-keeping, one tax receipt for all your giving
Strategic giving plan your philanthropy on your own timeline
Flexibility support multiple organizations from a single account
Ready to make an impact?
Have more questions? Contact us at contact@diasporaimpact.org or 240-564-0104, we’re happy to help you get started.