Donor advised fund : A Donor-Advised Fund (DAF) is a charitable investment account managed by a sponsoring organization—that allows you to potentially maximize tax benefits while strategically planning your giving.
How it works:
Contribution & Immediate Deduction: once you decide on an amount you would like to donate. You put assets (cash, real estate, appreciated stocks, or even non-publicly traded assets like private stock) into the fund. Then you could receive an immediate tax deduction in the year you contribute.
Tax-Advantaged Investment: Once the assets are in the fund, they are invested. Any growth is tax-free, meaning if your $10,000 contribution grows to $15,000, you have $5,000 more to give away than you started with, without any capital gains tax hit.
Grant Recommendation: You control the recommend grants to specific public charities. While the DAF sponsor technically has legal control.
Legacy & Succession: Most DAFs allow you to name successors (like your children) to manage the fund after you pass, or you can name specific charities to receive the remaining balance as a final legacy gift.