Donor-Advised Funds

What is a Donor-Advised Fund?

A Donor-Advised Fund (DAF) is a philanthropic vehicle that allows individuals, families, or organizations to make charitable contributions, receive an immediate tax deduction, and then recommend investments or grants to their chosen charities over time.

Key Characteristics:

  1. Owned by the Sponsor
    1. A Sub-Fund account setup underneath a Sponsoring Organization such as Legacy Global Foundation. 
  3. Advisory Privileges
    1. The Donor can advise the Sponsor how the funds should be used.
  5. Donations
    1. Donors can fund the DAF account through personal donations or donations from other persons/organizations.
  7. Investments
    1. DAFs can invest the assets and grow tax free as allowed by law.
  9. Grants
    1. DAFs can donate the funds out to other qualified charities.
  11. Tax Free
    1. DAF funds can grow and be used Tax Free.

Benefits Of A Donor-Advised Fund?

A Donor-Advised Fund (DAF) can be a valuable tool for individuals looking to manage their charitable giving effectively. Here are several reasons why someone might consider establishing a DAF:

  1. Tax Benefits
    1. Contributions to a DAF are tax-deductible in the year they are made, allowing donors to maximize their tax benefits. This can be particularly advantageous in high-income years such as liquidation events.
  3. Flexibility in Giving
    1. A DAF allows donors to contribute funds and then decide later how and when to distribute those funds to charities. This flexibility can help donors align their giving with their philanthropic goals and personal circumstances.
  5. Investment Growth
    1. Funds in a DAF can be invested, potentially growing over time. This means that the amount available for charitable giving can increase, allowing for larger donations in the future.
  7. Simplified Record-Keeping
    1. DAFs streamline the process of charitable giving by consolidating donations into a single account. This simplifies record-keeping and tax reporting, as donors receive a single tax receipt for their contributions.
  9. Anonymity
    1. Donors can choose to remain anonymous when making grants from their DAF, which can be appealing for those who prefer to keep their charitable activities private.
  11. Legacy Planning
    1. DAFs can be a way to involve family members in philanthropy, allowing them to participate in decision-making about charitable contributions and instilling values of giving in future generations through Dynasty Giving.
  13. Strategic Philanthropy
    1. A DAF provides the opportunity to engage in strategic philanthropy, allowing donors to research and select charities that align with their values and interests, and to support causes that are meaningful to them.
  15. Support for Multiple Charities
    1. A DAF allows donors to support multiple charities over time without the need to set up separate accounts for each one, making it easier to manage diverse philanthropic interests.
  17. Community Impact
    1. By pooling resources with other donors in a DAF, individuals can contribute to larger initiatives and have a greater impact on the community and causes they care about.

In summary, a Donor-Advised Fund can provide significant advantages in terms of tax efficiency, flexibility, and the ability to engage in thoughtful, strategic philanthropy. It can be an effective way to manage charitable giving while maximizing the impact of donations.

Why a Legacy Donor-Advised Fund?

What makes Legacy DAFs unique?

  1. The Legacy Family
    1. The Legacy Family is a group of independent charities and organizations that work together to help organizations, families and individuals maximize their positive impact on the world and communities around them. This family of charities enables us to solve your most complex problems.
    2. This family of charities enables complex charitable solutions such as multigenerational giving, international giving, fiscal sponsorship, split interest giving, or any other non-traditional charitable giving that other charities cannot handle.
  3. Flexibility
    1. Legacy specializes in doing the custom and complex giving that most other charities cannot or will not handle. Through a combination of our concierge approach, The Legacy Family, and our expertise, you won't find a better team to help accomplish your dreams in a competent and compliant way.
  5. Dynasty Giving
    1. Legacy DAFs can be passed down to successors generation after generation binding the parents and the children together in a chain of charitable giving. At Legacy we don't just plan for the next generation to be involved, but rather the next 10 generations or more. With no required sunset clause, your family can help make the world a better place generation after generation.
  7. Alternative Assets
    1. Invest in alternative assets that optimize both impact and returns. Legacy helps facilitate any legally allowed investment asset type for our DAFs such as Real Estate, Private Equity, Private Debt, etc.
    2. Most DAFs will allow you to invest the assets on the open markets in portfolio assets such as stocks and bonds. Many of our DAFs actually migrated to Legacy from other Sponsoring Charities because the old charities policies won't allow these kinds of investments. Some of our favorite investments are Impact Investments. These investments are designed to both grow the assets while funding the mission aligned operations the Donor is passionate about. If there is a company out there doing work you believe in, we can help facilitate an investment to help them maximize their impact.

How To Setup A Donor-Advised Fund?

Setting up a Donor-Advised Fund (DAF) is a straightforward process. Here’s a step-by-step guide to help you set up a DAF:

  1. Research
    1. Understand what Donor-Advised Funds are.
    2. What can a DAF do?
    3. What can't a DAF do?
    4. Pros and Cons?
  3. Complete the application process.
    1. Meet with us an discuss your goals & priorities so we can help carry them out in the best manner. We want to make sure that a Legacy DAF is the right fit for you and your needs.
    2. Sign the paperwork.
  5. Make an Initial Contribution
    1. Donate personal assets.
    2. Have assets held in custody by other organizations move the assets over.

Set Up A Donor-Advised Fund


Setting up a Donor-Advised Fund can be a rewarding way to manage your charitable giving. By following these steps, you can create a fund that reflects your philanthropic values and supports the causes you care about most. If you have any questions or need assistance please contact us for a consult.

I Set Up A DAF... Now What?

Using a DAF is fairly simple, you make a request, we work to make it happen while obeying all relevant laws and regulations. Repeat.

There are three primary things you can request a DAF do:

  1. Donate Assets to the DAF.
  2. Request an Investment.
  3. Request a Grant.

To make any use of funds request you can go to our Legacy Gateway.

Make A Request