Donor Advised Fund
A donor-advised fund (DAF) is a centralized vehicle for charitable giving. A DAF allows you to combine some of the most favorable tax benefits with the flexibility to support Farm Sanctuary and other charities. If you have a donor-advised fund, DAF Direct enables you to recommend grants to Farm Sanctuary directly from your DAF (as long as your DAF’s sponsoring organization is participating). Your help provides the critical funds to protect farm animals through Farm Sanctuary’s life-changing rescue & refuge, education, and advocacy work.
How does a Donor-Advised Fund work?
You make an irrevocable, tax‐deductible contribution of cash, long‐term appreciated securities, or other assets to a charity that sponsors a DAF program, which then establishes an account in your name. As a DAF donor, you may choose from a variety of investment options. Proceeds are put into an account from which you may make grant recommendations to Farm Sanctuary and other qualified charities.
If I have a DAF, how do I use the DAFDirect form?
1. Select the sponsoring organization from the “Donate now from” field.
2. Specify “Farm Sanctuary” in the “Designation” field.
3. Enter the amount (in dollars) you would like to recommend in the “Amount” field.
4. Click on the “NEXT” button to proceed to the sponsoring organization’s website to complete your donor-advised fund transaction. Please note, you will be directed to an external website to complete your transaction.
What are the benefits of giving through a donor-advised fund?
- 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 immediately tax‐deductible and any investment growth in the DAF is tax‐free. It may be easy to donate long-term appreciated securities, eliminating capital gains taxes and allowing you to support multiple charities from one block of stock.
- Family tradition — A DAF is a powerful way to build or continue your tradition of family philanthropy.
- No start‐up costs — There is no cost to establish a donor‐advised fund. However, there are often minimum initial charitable contributions to establish the DAF (typically $5,000 or more).
- No transaction fees — Once approved, 100 percent of your recommended grant goes to your public charity of choice.**
- Privacy — You may choose to remain anonymous if desired.
- Continuing your support —Name Farm Sanctuary as a final beneficiary of your fund, or if you are naming a successor to your donor-advised fund, tell him or her why farm animals are important to you.
** Sponsoring organizations do generally assess an administrative fee on the assets in a DAF. These fees vary by sponsoring organization.
If you’d like more information about giving through donor-advised funds, please contact Donor Relations Director Sarah Lux at 607-342-1607 or at firstname.lastname@example.org.
DISCLAIMER: This information is not intended to provide legal or accounting advice, or to address specific situations. Please consult with your legal or tax advisor to supplement and verify what you learn here.