WTF IS A DAF?
**Book a DAF education workshop for your protocol or community here in time for Giving Season **
Meet DAFsquatch, a Hidden Wealth Guardian
In the forest of philanthropy, DAFsquatch roams, ready to share their secret wisdom. Bridging traditional and tech-forward giving, they’ll help you discover your new era of easy philanthropy.
Why are we revealing DAFsquatch’s secrets?
We’re teaching newcomers to philanthropy about Donor Advised Funds (DAFs), emphasizing their smart, tax-advantaged giving. More donors that know DAFsquatch mean more support for transformative nonprofits.
What is a DAF?
A Donor-Advised Fund (DAF) allows donors to make a charitable contribution to a fund held at a public charity. The donor can then advise on the distribution of funds to different nonprofits over time, while immediately receiving a tax deduction in the year the contribution is made.
Why are DAFs popular?
People love DAFs for the immediate tax deduction and the flexibility to distribute funds to nonprofits over time. Plus, the ability to invest idle assets in portfolios, allowing donors to give more to their favorite nonprofits.
Why haven’t I heard of DAFs before?
Traditional DAFs often require a large minimum donation and are usually recommended by financial advisors for philanthropy-minded clients. Digital-first platforms may have lower minimums to enable access for a wider donor base.
What kind of investments can DAFs make?
DAF sponsors offer various investment options to allow donors to grow their impact. This can include a range of traditional stocks and bonds, to more innovative options like ESG funds, and digital assets, depending on the sponsors’ capabilities.
What should I donate to a DAF?
The best assets to donate are highly appreciated assets that have been held for more than a year, like stocks and cryptocurrencies.
Are there fees for DAFs?
Yes, DAF sponsors charge administrative and investment fees, typically as a percentage of assets under management (AUM), varying by sponsor. How does a DAF get distributed?
Donors recommend nonprofits and donation amounts to the DAF administrator, who then runs a due diligence and fund distribution process. Donors can opt to be anonymous and may also guide how the funds should be used by the recipient organization.
What isn’t eligible for a DAF donation?
- Donations to individuals
- Membership or tickets
- Political donations
What are the benefits of contributing to a DAF?
DAFsquatch loves being friends with anyone who itemizes their taxes!
Donors receive a tax deduction for in the year it’s made. Donors can also avoid capital gains taxes if appreciated donating stock or cryptocurrency. Be sure to speak with a financial professional about your specific financial situation.
DAF benefits (from any provider):
- Flexible
- Low cost
- Immediate and maximum tax benefits
- Administrative convenience
- Simple record keeping
- Anonymous capabilities
- Diverse investment options
- Tax-free growth
Why DAFsquatch uses Endaoment DAFs:
- Free to open
- No minimum asset requirement
- Transparent giving experience through blockchain
- Diverse traditional & crypto portfolios
- Tech-forward, innovative tools like automatic matching
- Enjoyable giving experience
How to choose a Provider
Consider the types of contributions accepted, investment options, fees, services offered, and alignment with your philanthropic goals and values.
- Single-Issue or Issue-Specific:
- Primarily support a particular cause or sector, such as education, health, environment, or arts and culture.
- Primarily support a particular cause or sector, such as education, health, environment, or arts and culture.
- Financial and Commercial:
- Operated by financial institutions or investment firms
- Operated by financial institutions or investment firms
- Community Foundation:
- Traditional Community Foundations serve the needs of a specific geographic area.
- Traditional Community Foundations serve the needs of a specific geographic area.
- Faith-based:
- Associated with religious organizations or institutions
- Tech-Forward:
- Start-up DAF platforms targeting the next generation of donors.
Nice Meeting You!
DAFsquatch was built with love by Endaoment, the first onchain donor-advised fund provider. Come hang with us and find your inner DAFSquatch!
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