Before You Open the Account
A few minutes of planning up front makes the setup itself go faster. Three questions are worth answering first:
What You Plan to Give: Cash is the simplest starting point, but many donors fund a DAF with appreciated stock, crypto, or private business interests. These assets are often the most tax-efficient way to give. If you’ve held them for more than a year, donating them directly means you generally won’t pay capital gains tax on the growth, and you can usually deduct their full fair market value. Knowing which assets you’ll use helps us guide you through the right transfer process.
Your Timing: If you want a deduction for this tax year, the contribution has to be completed by December 31. Some assets, especially non-cash ones, take longer to transfer, so it pays to start early.
Who Should Be Involved: Think about whether a spouse, children, or a financial advisor should have a role on the account now or in the future.
Five Steps to Setting Up Your DAF
Create Your Account: Start online through our account portal by selecting the Donor-Advised Fund option. Prefer a conversation first? You can schedule a meeting with one of our impact experts instead.
Name Your Fund and Its Advisors: Most donors name their fund after their family or a cause they care about. You'll also designate who can recommend grants and who will succeed you, which is how a DAF can become a multi-generational giving tradition.
Make Your First Contribution: Once assets reach your fund, the gift is irrevocable and generally deductible in that tax year. Donating long-term appreciated assets can also mean avoiding capital gains tax you'd owe if you sold them first.
Decide How Your Balance Is Invested: While you decide where to give, your balance can be invested. Keep in mind that, like any investment, its value can rise or fall with the market.
Recommend Your First Grant: Grants can go to any qualified 501(c)(3) public charity. There's no rush. Some donors grant right away, while others let the fund grow and give on their own schedule. Grants can't pay for personal benefits like gala tickets or membership perks.
A Note on 2026 Tax Rules
New federal rules took effect this year. Itemizers can now deduct only the portion of their charitable gifts above 0.5% of their adjusted gross income, and the deduction's value is capped at 35% for those in the top bracket. The new deduction for non-itemizers does not apply to DAF contributions. Because everyone's situation is different, it's worth reviewing your plan with a tax advisor before you contribute.
Frequently Asked Questions
Can I get my money back after I contribute?
No. A contribution to a DAF is an irrevocable charitable gift, which is what makes it tax-deductible. What you keep is advisory privilege: the ability to recommend which charities receive grants, and when.
Do I have to grant out my balance by a certain date?
There's currently no federal rule requiring DAFs to distribute a set amount each year. That said, a DAF works best as an active giving tool, and many donors set a personal rhythm, such as granting each year-end or around causes they follow closely.
Can I support my church, alma mater, or local food bank?
In most cases, yes. Churches, universities, and community nonprofits are typically qualified 501(c)(3) public charities. If you're unsure about a specific organization, our team can confirm eligibility before the grant goes out.
Conclusion
Setting up a Donor-Advised Fund takes far less time than most people expect, and the payoff is a simpler, more intentional way to give. Plan what you'll contribute, open the account, and give on a timeline that works for you. If you'd like help thinking it through, our team is happy to walk you through it. Please reach out here.
