Donor-advised fund

A donor-advised fund (DAF) is a charitable giving account that allows individuals to make tax-deductible donations to a fund, which is then managed by a sponsoring organization. Donors can recommend how and when their contributions are distributed to nonprofit organizations. This provides flexibility in giving, allowing donors to support charities over time while maximizing tax benefits. It simplifies the donation process and encourages strategic philanthropy, enabling individuals to engage in charitable activities while retaining some control over their contributions.