DAC (Direct Access Charitable)

A Direct Access Charitable (DAC) fund is a way for donors to allocate their charitable contributions directly to specific projects, organizations, or causes within a larger charity. Unlike traditional donations, which are often pooled and then distributed, DACs allow for more targeted support, providing donors with greater control and transparency about how their contributions are used. This arrangement helps charities track and manage funds more efficiently, ensuring resources go directly to the intended initiatives, and can also offer tax benefits for donors. Overall, DACs enhance accountability and donor engagement in philanthropy.