What is a Donor-Advised Fund (DAF)?
A donor-advised fund, or DAF, is a philanthropic vehicle established at a public charity. It allows donors to make a charitable contribution, receive an immediate tax benefit and then recommend grants from the fund over time. If you have a donor advised fund with Fidelity Charitable Gift Fund or Schwab Charitable, you can use the DAF Direct link to the right to recommend grants to the President & Fellows of Middlebury College.
How a Donor-Advised Fund Works
1. You make an irrevocable contribution of personal assets.
2. You immediately receive the maximum tax deduction that the IRS allows.
3. You name your donor-advised fund account, advisors, and any successors or charitable beneficiaries.
4. Your contribution is placed into a donor-advised fund account where it can be invested and grow tax free.
5. At any time afterward, you can recommend grants from your account to qualified charities.