Donor-Advised Fund
What is a Donor-Advised Fund (DAF)?
A donor-advised fund (DAF) is a charitable investment account that allows an individual to contribute cash, securities or other assets with the intent of supporting charities. A DAF can be offered by a sponsoring organization, such as a community foundation, that accepts contributions, invests those funds for tax-free growth and then allows the donor to recommend charitable grants/donations to eligible IRS-qualified charities.
Contributions to a DAF are immediately tax-deductible for the donor. No additional tax deductions occur when a recommended distribution is made from the DAF to a qualified charity because the tax-deduction was obtained by the donor for the original contribution to the DAF.
Making a gift through a Donor-Advised Fund (DAF)
To donate using your donor-advised fund, please make your grant recommendation for your donation to Piedmont Healthcare Foundation to your fund administrator. Notify a Piedmont Foundation representative know that you have made a grant recommendation. This information helps to ensure your gift is properly allocated. Please remember, donations from your DAF cannot result in any benefit to you in return. A letter will be sent to you by the Piedmont Healthcare Foundation acknowledging the donation you initiated through your DAF, but this will not provide any additional tax benefit for you as a donor.
Donor-Advised Funds and Fundraising Events
Donor-advised funds cannot be used to purchase tickets or sponsorships for charitable events such as galas, golf tournaments, etc. if the donor or any related party receives more than an incidental benefit (goods and services) in return for the contribution. Additionally, a DAF cannot be used to purchase items at a fundraising auction or tickets for a raffle. If the donor chooses to recommend a DAF to support an event the donor may receive recognition as a sponsor and the gift will be considered fully tax deductible. However, the donor may not attend the event or receive any incidental benefits.