What is a donor-advised fund (DAF)?
A DAF is a flexible charitable giving account that can help make your giving more strategic and intentional. Once you contribute assets to your DAF account, you can recommend how those assets are invested for potential tax-free growth, as well as when and where grants are made to qualified U.S. public charities.
DAFs are often used as part of a broader approach to charitable and financial planning, helping donors align their giving with their goals over time. Contributions may also be eligible for a current-year tax deduction, if you itemize when filing taxes.
How a donor-advised fund works
Using a DAF is straightforward and can be thought of as a three-step process:
1. Contribute
Make an irrevocable contribution to your DAF account. Contributions can include cash, publicly traded securities such as stocks or mutual funds, and complex non-cash assets, including real estate, private business interests, cryptocurrency, or art.
2. Invest
Once assets are contributed, you or your advisor can recommend an investment allocation for contributed assets for potential tax-free growth, with the objective of having even more to grant to charity.
3. Grant
When you're ready, you can recommend grants from your DAF account to qualified U.S. public charities of your choice. Grant recommendations can be made immediately, over time, or as part of a succession plan.
DAFs vs. other giving options
A DAF is one of several ways to approach charitable giving, offering many individuals and families a flexible, simple, and strategic way to support the causes they care about. Learn more about how DAFs, private foundations, and other giving vehicles can work together to help achieve your philanthropic goals here.
Table
| Key considerations | Donor-advised fund | Direct giving | Private foundation |
|---|---|---|---|
| Simplicity of set up and use |
Simple Easy to establish and use |
Simple Best for one-time gifts |
Difficult Requires a legal entity and staff |
| Potential tax deduction (when itemizing) |
When you contribute Tax deductions can be taken when assets are contributed to a DAF account |
When you donate Tax deductions can be taken when a donation is made directly to a charity |
When you contribute Tax deductions can be taken when assets are contributed to a private foundation |
| Administrative burden |
Low The sponsoring organization handles entire administration burden |
Low-moderate Depends on number and amount of individual gifts made |
High Requires ongoing recordkeeping, filings, and compliance |
| Privacy |
Optional Grant recommendations may remain private, if desired |
Varies Recognition depends on the donor's wishes and method of donation |
Public Annual filings and certain information are publicly available |
| Timing flexibility |
Flexible Contribute now and recommend grants over time |
Immediate Donation and charitable support happen at the same time |
Long-term Designed for ongoing charitable programs and governance |
Why DAFgiving360®?
DAFgiving360 is an independent 501(c)(3) public charity with a mission to increase charitable giving in the U.S. For more than 25 years, DAFgiving360 has provided a tax-smart and simple giving solution of a donor-advised fund (DAF) account to donors and financial professionals.
With DAFgiving360, you benefit from:
- Integration with Schwab accounts, allowing you to manage your DAF account in the same place you view and manage your Schwab accounts.
- No minimum to open a core account and low, industry-standard fees, supporting a cost-effective approach to charitable giving.
- Administrative support and recordkeeping handled on your behalf.
- Convenient, on-the-go grant recommendations through the Schwab Mobile app, helping you to act on giving opportunities wherever you are.
- Investment expertise and advisor-managed investment options designed to support your charitable goals.
$10.85 BILLION
Granted in fiscal year 2026
1.69 MILLION
Grants sent to charities in fiscal year 2026
173,000+
Charities supported in fiscal year 2026
Ready to get started?
Discover how a donor-advised fund can help make your charitable giving more strategic and aligned with your overall financial picture.
Have questions? Check out our FAQs below.
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Frequently asked questions
People use donor-advised funds because they offer a flexible and potentially tax-efficient way to support charitable causes. A DAF allows donors to contribute assets, potentially receive a tax deduction, invest contributed assets for potential growth that’s tax-free, and support multiple charities over time from one account.
You can contribute a wide range of assets to a DAF account, including cash, publicly traded stocks, mutual funds, private business interests, and other non-cash assets such as real estate and cryptocurrency. Once a contribution is made to a DAF account, the contribution is irrevocable.
You can open a core account with no minimum initial contribution. The minimum amount needed for a professionally managed account is $100,000.
It is free to open a DAF account with DAFgiving360. Total fees on the account typically include the annual administrative fee and the investment fees. Fees vary depending on the account type, account balance, and how contributed assets are invested. View account fees and minimums here.
- Donating to a DAF account can unlock these potential tax benefits:
- Claim a current-year tax deduction on a cash or non-cash contribution based on the assets' fair market value (if you itemize)
- Potentially eliminate capital gains tax when you donate an appreciated non-cash asset held more than one year (unlocking additional funds to charity by up to 20%)
- DAF assets that are invested can also potentially grow tax free
- Please consult with your tax or legal advisor to review the specific tax implications of your proposed contributions. Learn more about the tax benefits of a donor-advised fund here.
Donor-advised funds are used by individuals, families, and financial professionals who want a flexible and strategic way to support charitable causes. Common DAF users include:
- Investors with appreciated assets such as stock
- Individuals experiencing high-income tax years or planning for retirement
- Families planning long-term philanthropy and charitable legacy
- People selling a major asset that want to minimize capital gains taxes
- Anyone who wants to maximize their charitable giving in a simpler way
- Donors who prefer to contribute now and support multiple charities over time
- Financial advisors and consultants that want to deepen their client relationships and expand their financial services
Donors can recommend grants to qualified 501(c)(3) public charities from their DAF account. For more information regarding charity eligibility, review our Program Policies here.
Yes. DAFgiving360 allows you to name up to ten total successors and/or charitable beneficiaries to help continue your charitable legacy. Learn more about DAF succession plans here.
Anyone 18 or older can open a donor-advised fund (DAF) account with DAFgiving360.
If you have an account with Schwab, you may conveniently access your donor-advised fund alongside your Schwab accounts from the Client Center.
If you will be opening and funding your account with assets from an institution other than Schwab, please complete the Transfer of Assets form in addition to the new account application.