A donor-advised fund, or DAF, is a giving vehicle 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 charities whenever makes sense for them.
History and Trends
The first donor-advised funds were created in the 1930s, though regulatory recognition did not exist until the Tax Reform Act of 1969. In the 1990s, donor-advised funds began to grow in visibility and popularity, and today they are philanthropy’s fastest-growing vehicles. Grants from donor-advised funds account for more than 3 percent of all giving in the United States. For a detailed look at donor-advised fund trends, you can view our most recent Donor-Advised Fund Report.