Giving Through Your Donor-Advised Fund

DAFpay allows you to give from your Donor Advised Fund account at over 1000 financial institutions including Fidelity Charitable, Schwab Charitable, and Vanguard Charitable. Click the DAFpay button below to get started.

General Information

What is a Donor-Advised Fund?

A donor-advised fund (DAF) is a charitable investment account with a sponsoring organization that has immediate tax benefits and allows donors to recommend grants to qualified non-profit organizations over time. It makes managing your charitable contributions and fulfilling your philanthropic goals simple and easy. 

How does it work?

• GIVE: Make a tax-deductible donation by establishing a DAF account and donating cash, stocks, or non-publicly traded assets to be eligible for an immediate tax deduction.
• GROW: Grow your donation, tax-free while you decide which charities to support.
• GRANT: Direct your support to charities either right away or gradually, according to your preference and at your pace.

Key Terms

DAF Account: Charitable investment account for the sole purpose of supporting charitable organizations that are important to the donor.

Donor Advisor: The donor who makes recommendations on who and when to make a grant.

DAF Sponsor or Sponsoring Charitable Organization or Sponsoring Organization: A 501(c)(3) public charity that manages and administers individual DAF accounts, such as Fidelity Charitable and Schwab Charitable.

Grants: Donations to qualified non-profit organizations.

What are the main advantages of a donor-advised fund?

Simplicity – The DAF sponsor handles the record-keeping, disbursements, and tax receipts.
Flexibility – Timing of your tax deduction can be separate from your charitable decision making.
Tax Efficiency – Contributions are tax-deductible, and any investment growth in the DAF is tax-free. You can also donate long-term appreciated securities and avoid capital gains taxes so you can then support multiple charities from one block of stock.
Family Legacy – Build or continue a family tradition of philanthropy.
Low Costs – There is no startup cost to establish a DAF, though there may be a minimum initial contribution (determined by the DAF Sponsor).
No Transaction Fees – Once approved, 100% of your recommended grant goes directly to your chosen charity.
Privacy – You can choose to remain anonymous.

Getting Started

1. Contribute: Make an irrevocable contribution to a sponsoring charitable organization to establish a DAF.   
2. Name Your Fund: Choose a name for your DAF (e.g. “The John Doe Fund”). The DAF sponsor will then allocate the charitable contribution to the donor‘s DAF. 
3. Advise on Investments: The donor-advisor will work with the DAF Sponsor to guide how the fund’s assets are invested.  
4. Recommend Disbursements: The donor-advisor suggests grants (donations) to IRS-qualified non-profit organizations (Disbursements, must meet the DAF Sponsor’s grant-making criteria).  
5. Grant Approval: Once approved, the grant is made to the chosen non-profit organization. 

You can donate to your preferred non-profit using your donor advised fund in just three easy clicks. If you have an account through another financial institute, please contact your financial institution directly to make a donation.

For more information, please contact Jinky Aleman-Roche at 617-598-5072 or jroche@gbfb.org.