Donor advised fund
One of the most popular giving options today
Similar to a private foundation, a donor advised fund (DAF) provides an immediate full tax benefit and lets you donate to your favorite charities, but with less expense and setup.
How donor advised funds work
A DAF administered by Raymond James Charitable provides an easy way to make significant charitable gifts with immediate tax benefits and deductions. An agreement is created between you and Raymond James Charitable, which allows you to advise how portions of the charitable gifts are used.
The benefits of a donor advised fund
DAFs serve as tax-efficient giving vehicles, offering many of the same benefits as private foundations while being easy to set up and maintain. Some of these benefits include:
- No capital gains tax on long-term appreciated assets that are gifted
- Immediate tax deduction for the full market value of the gift* for most assets
- No excise taxes, unlike a private foundation
- Assets donated are no longer part of the estate value
- No minimum annual distribution requirement for DAF account holders
You will be asked to advise in four areas:
- How the money is invested within the options offered by the fund
- Which charities will ultimately receive grants from the fund
- How much will be given to each charity
- Who will make these decisions instead of or as a successor to you
To learn more about establishing a DAF, talk to your financial advisor. We recommend you work with your financial advisor alongside your legal and tax professionals to coordinate the most appropriate charitable solution for your situation.
*Any amount that can’t be deducted in the current year can be carried over and deducted for up to five succeeding years.
Key considerations before choosing a DAF:
- There are some requirements to get started.
- Grants from your DAF must meet certain tax criteria.
- Grant recommendations can be made to the charity of your choice.
- You can change your investment approach.
- A DAF cannot purchase insurance on a donor’s life.
- Contributions to your DAF cannot be withdrawn later.
- Naming Raymond James Charitable as the beneficiary
Assets contributed to Raymond James Charitable are invested tax free. At the time of your contribution, you may recommend that your contribution be invested in any of seven investment objectives:
Investment Advisor Program (IAP)
In addition to these investment objectives, accounts with market values of at least $500,000 may choose to use the Investment Advisor Program (IAP) option. This allows the donor to nominate his or her financial advisor to provide investment advice to the investment manager, Raymond James Trust, for assets held in the account.
Additional Information & Forms
- Exploring Donor Advised Funds Brochure (PDF)
- Donor Advised Fund Disclosure Brochure (PDF)
- Donor Advised Fund Application
- Donor Advised Fund Investment Advisor Program (IAP) Agreement
- Donor Advised Fund IAP Investment Guidelines (PDF)
- Legacy Giving Recommendation Form (PDF)
- Donor Account Change Form (PDF)
- Planned Gift Donor Account Application (PDF)
- How our Donor Advised Fund Compares to a Private Foundation