Donor-Advised Funds: A Flexible and Easy Way to Give

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Donor-advised funds (DAFs) have become increasingly popular in the world of charitable giving. In fact, according to the National Philanthropic Trust, there are nearly two million DAF accounts in the United States as of 2022. This vehicle offers flexibility for individuals, families, and organizations looking to make a positive impact through their philanthropy.

Donors can contribute assets to their DAF at any time and subsequently recommend donations to their preferred charities. These contributions may include cash, publicly traded securities, mutual funds, and even real estate.

In addition to their philanthropic benefits, DAFs also present financial opportunities for donors. As Nick Flores, Managing Director at Caprock, points out in this article, DAF contributions can grow tax-free once invested. Over time, the initial donation could potentially yield a financial return, thereby expanding the donor’s capacity to make incremental gifts in the future. This dynamic allows for more strategic grantmaking to advance the donor’s values.

Caprock advisors can help optimize your giving. Contact our team to learn more about how we can help you align your wealth with your values.

The Caprock Group, LLC (“Caprock”) is an SEC registered investment adviser. Registration with the SEC does not imply a certain level of skill or training. The information and opinions contained in this document are for informational purposes only and is not intended to serve as specific financial, accounting or tax advice. While reasonable care has been taken to ensure that the information herein is factually correct, Caprock makes no representation or guarantee as to its accuracy or completeness. Certain information has been provided by third-party sources and it has not been independently verified and its accuracy/completeness cannot be guaranteed. This document is for private circulation only. This document does not constitute or form part of any offer to issue or sell, or any solicitation of any offer to subscribe or purchase any investment.

Date

December 13, 2023

Category

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