What is a Donor Advised Fund?
A Donor Advised Fund (DAF) is a giving vehicle administered by a charitable sponsor. A DAF— whether held at a national sponsor like Schwab or Fidelity, or a local community foundation— lets donors make an irrevocable charitable contribution, receive an immediate tax dedication, and then recommend grants over time. Importantly, the money in a DAF can only be granted to non-profits—it cannot be returned to the original donor. It’s up to that donor to recommend when grants are made.
How does it work?
Establish your DAF by making an irrevocable, tax-deductible donation to a public charity that sponsors a DAF program.
Advise on the investment allocation to one or more non-profits of your choice along with the timing of the grant to the non-profit.
What are the main advantages of a DAF?
Simplicity – The DAF sponsor handles all 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. It is also easy to donate long term appreciated securities, eliminating capital gains taxes and allowing you to support multiple charities from one block of stock.
Family legacy – A DAF is a powerful way to build or continue a tradition of family philanthropy.
No start-up costs – There is no cost to establish a DAF. However, there are often minimum initial charitable contributions to establish the DAF (many start at $5,000).
No transaction fees – Once approved, 100% of your recommended grant goes to your qualified public charity of choice.
Privacy if desired- Donors may choose to be acknowledged or remain anonymous.
Sponsoring organizations generally assess an administrative fee on the assets in a DAF. These fees vary by sponsoring organization.
Can I receive membership benefits from San Francisco Contemporary Music Players for an annual fund donation made through a DAF?
Yes, you can purchase a membership with your DAF. Our memberships are $75/yr. See our membership page for more information. Since the original contribution to the DAF provided the maximum tax deduction, the donor-advisor cannot receive any benefits that would change the value of the tax deduction. However, the donor-advisor can receive benefits that have insubstantial or no fair market value ($75 limit).
Whom should I contact with questions regarding giving to San Francisco Contemporary Music Players through a DAF?
Additional questions about making a gift to SFCMP through a DAF should be directed to Lisa Oman, Executive Director. Please find our mailing address and contact information here.