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Understanding DAFs
What is a donor-advised fund?
What is a donor-advised fund?
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Written by Support
Updated over a week ago

A donor-advised fund (DAF) is a tax-deductible financial account for the sole purpose of charitable giving. Like a 401k or an IRA for retirement, or a 529 plan for college, a DAF is just an industry term for a special type of financial account dedicated to charity.

How it works

  • Set money aside for charity. Daffy members make charitable contributions to their fund at any time, and because the contributions are an irrevocable donation to the charity that offers the donor-advised fund (i.e. Daffy), they can receive an immediate tax deduction for their contributions.

  • Invest to increase impact. Once the contributions have been received, the money is invested in a modern portfolio of the members' choice. Any investment gains are tax-free and increase your potential philanthropic impact.

  • Donate to charity in seconds. At any time, you can make a donation recommendation to any of over 1.5 million charities on Daffy. Once we have confirmed that the organization is approved by the IRS and the donation meets the criteria in our Member Agreement, the recommendation is approved, and the donation is sent to the organization.

  • Never lose a donation receipt again. At the end of the year, you'll have one receipt for all your charitable contributions, making tax time easier than ever. You can access this tax receipt year-round.

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