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.
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