What is a Donor-Advised Fund?
A donor-advised fund, or DAF, is a philanthropic fund held within a charitable organisation, like NPT-UK. It allows donors to make an irrevocable charitable contribution, receive immediate tax relief and then recommend charitable grants from the fund over time. An easy way to think about a donor-advised fund is like a charitable savings account: a donor contributes to the fund as frequently as they like and then recommends grants to their favourite charity when they are ready.
1. You make a charitable contribution.
• You make an irrevocable donation of personal assets.
• You receive tax recognition for donations to the DAF account in the UK and US.
• You make additional donations at any time.
2. You recommend investments to grow the balance.
3. You recommend grants from your account to qualified charities at any time afterward.
Donor-advised funds are increasingly popular giving vehicles in the UK because they offer administrative convenience, cost savings, and tax advantages.