DAFs vs Foundations

The flexibility that the UI DAF provides makes it very similar to a private foundation minus the costs and required 5% yearly distribution. DAFs are also significantly more tax-efficient than private foundations

The flexibility that the UI DAF provides makes it very similar to a private foundation minus the costs and required 5% yearly distribution. DAFs are also significantly more tax-efficient than private foundations

The flexibility that the UI DAF provides makes it very similar to a private foundation minus the costs and required 5% yearly distribution. DAFs are also significantly more tax-efficient than private foundations

Create Account

DAF

DAF

Private Foundation

Private Foundation

Fees & Setup

  • Immediate

  • Low administration fees and startup costs

  • Immediate

  • Low administration fees and startup costs

  • Can take several months  

  • High administrations fees and startup costs 

  • Can take several months  

  • High administrations fees and startup costs 

Causes to Support

  • Domestic and International

  • Grants and impact investments

  • Cannot issue grants to individuals

  • Domestic and International

  • Grants and impact investments

  • Cannot issue grants to individuals

  • Domestic and International

  • Grants and Impact Investments

  • Domestic and International

  • Grants and Impact Investments

Tax Benefits

  • Cash donation: up to 60% AGI tax deductibility

  • Short-term capital gain property: up to 50% AGI

  • Long-term capital gain property: up to 30% AGI

  • All securities deducted at Fair Market Value

  • Cash donation: up to 60% AGI tax deductibility

  • Short-term capital gain property: up to 50% AGI

  • Long-term capital gain property: up to 30% AGI

  • All securities deducted at Fair Market Value

  • Cash donation: up to 30% AGI tax deductibility

  • Short-term capital gain property: up to 50% AGI

  • Long-term capital gain property: up to 20% AGI

  • Fair Market Value for publicly traded stock 

  • Non-public securities deducted at the cost basis (no appreciation)

  • Cash donation: up to 30% AGI tax deductibility

  • Short-term capital gain property: up to 50% AGI

  • Long-term capital gain property: up to 20% AGI

  • Fair Market Value for publicly traded stock 

  • Non-public securities deducted at the cost basis (no appreciation)

Succession Plan

  • Can name individuals, businesses, or charities as successor advisors for the DAF

  • Can name individuals, businesses, or charities as successor advisors for the DAF

  • Successors and officers confirmed only by vote of the board

  • Successors and officers confirmed only by vote of the board

Distributions

Distributions

  • No required distributions 

  • No required distributions 

  • IRS requires 5% distributions assets per year

  • IRS requires 5% distributions assets per year

Anonymity

Anonymity

  • Anonymous contributions possible

  • Anonymous contributions possible

  • All contributions are made public

  • All contributions are made public