Donor-advised funds (DAFs) are the US’ fastest growing charitable giving vehicle, now outnumbering private foundations almost three times over.
UK-based advisors increasingly see DAFs as essential in estate planning, and they are an ideal choice for individuals and families seeking a convenient and cost-effective way to manage their philanthropy. So, when are DAFs the right choice for your client?
HOW DAFs WORK
Defined as a philanthropic giving vehicle or a fund administered by a charitable sponsor, a DAF is basically a charitable savings account. DAFs are a less administration-heavy alternative to setting up a charitable trust or grantmaking foundation. They are easy to create (they can be established in a day) and require very little oversight from the donor, providing a simple way to streamline the process of giving.