Donor Advised Funds

A Donor Advised Fund, or DAF, is a giving account established at a public charity. It allows donors to make a charitable contribution, receive an immediate tax deduction, and then recommend grants from the fund over time.  Donors can contribute to the fund as frequently as they like, and then recommend grants to their favorite charitable organizations whenever it makes sense for them.

HOW IT WORKS

Contribute Assets: To establish your donor-advised fund, you make an irrevocable, tax-deductible contribution of personal assets - which could include cash and cash equivalents, stock, real estate, and more to a public charity that sponsors a DAF program. Most sponsoring organizations require a minimum initial charitable contribution to establish the donor-advised fund, although additional contributions may be less.

Customize Your DAF Account: As you establish your account, discuss with your donor-advised fund sponsor, the many different ways you can structure your account that will best serve your charitable goals now and in the future.

Invest for Future Growth: You can make additional contributions to your fund at any time. Your contributions are invested by the sponsoring organization, which provides regular accounting statements to you.

Support Your Favorite Charities: Once your donor-advised fund has been established, you can begin recommending grants to charitable organizations that are closest to you. DAF Sponsors can approve grant recommendations to most organizations that are tax-exempt under Internal Revenue Code (Code) Section 501(c)(3) and classified as public charities under Code Section 509(a), as well as certain private operating foundations.

Grants made to SWIRCA & More through Donor Advised Funds can be designated for SWIRCA to use wherever the need is greatest or aligned with programmatic areas that match our supporters' interest, such as Meals on Wheels Southwestern Indiana, Aging and Disability Resource Center, and the Activity and Wellness Center.

Clients of Fidelity Charitable, Schwab Charitable, and BNY Mellon can easily make a designation through the DAF Direct window on this page.

Simplicity- The DAF sponsor handles all recordkeeping, disbursements, and tax receipts. It also allows you to support a number of charitable organizations without having to retain records for separate contributions.

Flexibility- You can choose to recommend the same charitable organizations to receive grant dollars from your donor-advised fund year to year or you can decide to grant to new organizations.

Tax Deductible- Contributions are tax-deductible, and any investment growth in the DAF is tax-free. It is also easy to donate long-term appreciated securities, eliminating capital gains taxes and allowing you to support several charities from one block of stock. Timing of your tax deduction can also be separate from your charitable decision making.

Family Legacy- A DAF is a powerful way to build or continue a tradition of family philanthropy. It's also a great tool to teach younger generations the values of philanthropy by involving them in the decisions about which grants to recommend.

For more information on Donor-Advised Funds or to learn ways on how to maximize the impact of Donor-Advised Funds, please contact the SWIRCA Development Department at 812-492-7420.