10 Reasons Why Donor Advised Funds Are a Smart Way to Give Back

We believe a Donor Advised Fund (DAF) is one of the most effective tools for aligning your financial strategy with your philanthropic goals. Here’s why:

10 Reasons Why Donor Advised Funds Are a Smart Way to Give Back

Want to make your charitable giving smarter, simpler, and more impactful? Donor Advised Funds (DAFs) are a game-changing solution for individuals and families who want to donate with ease and efficiency. With a DAF, you can make a contribution, enjoy an immediate tax benefit, and then recommend grants to your chosen causes at your convenience.

1. Simplified Taxes

Instead of juggling receipts from multiple charities, you make one donation to your DAF and receive one tax receipt. Filing becomes far less stressful.

2. Maximize Tax Benefits Through Bundling

By “bundling” donations into a single year, you can itemize and maximize deductions, while still supporting your favorite causes over time. You can contribute today, take the tax deduction immediately, and then thoughtfully recommend grants over time. This flexibility ensures your giving aligns with both your financial planning and your philanthropic vision.

3. Grow Your Charitable Dollars

Your contributions can be invested, allowing them to grow. A $10,000 donation today could become $12,000 in a year, increasing your impact with no capital gain tax consequence. With a DAF, you decide when and how your charitable dollars are distributed. 

4. Avoid Capital Gains Taxes

Donating highly appreciated assets like stocks through a DAF lets you avoid capital gains taxes, meaning more money goes directly to charity.

5. Streamlined Giving

All your charitable activity is centralized in one account. With secure online access, you can recommend grants, track donations, and view reports anytime.

6. Maximize Your Impact

A DAF helps you create a thoughtful annual giving strategy, ensuring your donations reach the causes that matter most to you.

7. Low-Cost, High-Impact Giving

DAFs offer cost-effective solution with no required minimums.

8. Donate Complex Assets

From stocks to other appreciated assets, DAFs make it easy to give in ways that some charities can’t accept directly.

9. Involve Your Family

Many families opt to name their fund something like the "Family Charitable Fund" or the "Family Foundation," and make donations reflecting the values and causes that are important to them. By involving future generations, a DAF allows you to instill a sense of purpose and responsibility in younger family members. Plus, with Successor Advisors in place, your charitable legacy can continue for generations, ensuring that your family's commitment to giving endures over time.

10. Easy to Set Up

We handle the account setup process, making it fast, simple, and stress-free to start your Donor-Advised Fund (DAF). You can begin making contributions right away without any delays. If you’d like to explore how to implement a donation strategy that aligns with your financial and philanthropic goals, Altman Advisors is here to guide you every step of the way.

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Important Disclosures

Altman Advisors is a Registered Investment Adviser. This article is solely for informational purposes. Advisory services are only offered to clients or prospective clients where Altman Advisors and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Altman Advisors unless a client service agreement is in place.