Donor Advised Funds
Simplify Your Giving and Maximize Tax Savings
A donor advised fund (DAF), which is similar to a charitable savings account, gives you the flexibility to recommend how much and how often money is granted to the University of Pittsburgh and other qualified charities.
To create a DAF, you may complete a written agreement at a community foundation or other sponsoring organization. You then make a contribution to the fund, which you can add to at any time. The sponsoring organization invests your funds and you periodically request that charities of your choice, such as the University of Pittsburgh, receive a distribution from your DAF.
There are a number of benefits of opening a donor advised fund, including:
- When you create a DAF by bundling several years’ worth of charitable giving into one year and then distributing those funds over several years, you can take a large itemized tax deduction in the year the DAF is created and then enjoy the benefits of the recently increased standard deduction in subsequent years.
- You eliminate capital gains taxes when you transfer long-term appreciated assets directly to the DAF.
- You no longer have to retain records for each grant recommendation as the DAF administrator does that for you.
- Families can build a tradition of giving by involving children in the decisions about what important causes to fund.
- You can also create a lasting legacy by naming your loved ones as your successor to continue to recommend charitable organizations, or name the University of Pittsburgh to receive all or part of the account balance after your lifetime.
DAF Basics
Still learning about DAFs? Discover the ease of opening a donor advised fund—plus the advantages you’ll enjoy—with your complimentary guide Centralize Your Giving With Donor Advised Funds.
Get More From Your DAF
Ensure you’ve made the most of your donor advised fund—for your family and for the University of Pittsburgh. Download the complimentary guide Maximize the Impact of Donor Advised Funds.
View My GuideGifts That Pay
Your payments depend on your age at the time of the donation. If you are younger than 60, we recommend that you learn more about your options and download this complimentary guide Deferred Gift Annuities: Plan Now, Benefit Later.
View My GuideAn Example of How It Works
Joe and Laura want to give back to their hometown by putting their money where it will do the most good. They establish a $25,000 donor advised fund with a community foundation.
The couple receives a federal income tax charitable deduction for the amount of the gift. They also get the time they need to decide which charities to support.
After researching community needs with the foundation’s staff, Joe and Laura recommend grants for the University of Pittsburgh (which they’ve supported for years) and a local animal shelter. The foundation presents the charities with checks from the Patricia Fund, which Joe and Laura named in honor of Laura’s mother. They name the University of Pittsburgh as the beneficiary to receive the account balance after their lifetimes. Joe and Laura are delighted to start this personal legacy of giving.