What is a donor-advised fund?

A donor-advised fund (DAF) provides donors with a centralized charitable giving vehicle. It allows philanthropically inclined individuals, families, and corporations to make an irrevocable charitable gift to a public charity that sponsors a DAF program and take an immediate tax deduction. Most sponsoring organizations of DAFs accept cash equivalents, securities, and certain other assets.

How does it work?

• Establish your DAF by making an irrevocable, tax-deductible donation to a public charity that sponsors a DAF program.
• Advise the investment allocation of the donated assets (any investment growth is tax-free).
• Recommend grants to qualified public charities of your choice.

Main advantages of a donor-advised fund

• Simplicity—The DAF sponsor handles all record keeping, disbursements, and tax receipts.
• Flexibility—Timing of your tax deduction can be separate from your charitable decision making.
• Tax efficiency—Contributions are tax-deductible, and any investment growth in theDAF is tax-free. It is also easy to donate long-term appreciated securities, eliminating capital gains taxes and allowing you to support several charities from one block of stock.
• Family legacy—A DAF is a powerful way to build or continue a tradition of family philanthropy.
• No start-up costs—There is no cost to establish a donor-advised fund. However, there are often minimum initial charitable contributions to establish the DAF (typically $5,000 or more).*
• No transaction fees—Once approved, 100% of your recommended grant goes to your qualified public charity of choice.*
• Privacy if desired—Donors may choose to remain anonymous to the grant recipient.

*Sponsoring organizations generally assess an administrative fee on the assets in a DAF. These fees vary by the charity that sponsors a DAF program.

Generosity comes in many forms, and it's often the best way for you to support important causes that matter the most to you in your life. When you give to the CAMC Foundation, you help us provide compassionate health services and contribute to the quality of life and economic vitality of the region.

Start here by learning the different gift options available to you. We will work with you to find a charitable plan that lets you provide for your loved ones as well as Charleston Area Medical Center’s patients and families.

Visit the Planned Giving Website