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WHAT ARE DONOR ADVISED FUNDS?

What is a DAF?

A Donor Advised Fund, or DAF, is a type of fund offered here at C3F that offers a flexible, low-maintenance way to manage your philanthropy while assets in the fund are invested and grow tax-free.

A Donor Advised Fund (DAF) is like a charitable investment account that you set up for the sole purpose of supporting nonprofit organizations. You contribute assets—such as cash, stocks, or other investments—to the fund, and in return, you’re generally eligible for an immediate tax deduction. From there, you can recommend grants to your favorite charities over time, at your own pace.

Here’s how it works in three simple steps:

1. Give: Make a tax-deductible donation to your DAF.
2. Grow: The assets in the fund can be invested and grow tax-free.
3. Grant: Recommend grants to nonprofit organizations, schools or municipalities whenever you're ready.

It’s a flexible, low-maintenance way to manage your philanthropy. Want to learn more? Reach out to foundation staff at 231-536-2440 or info@c3f.org.

One thing to keep in mind: The IRS prohibits QCDs from being made to DAFs and other entities where the donor retains advisory privileges.