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ImpactAssets closes the gap between impact investing interest and action by providing products for philanthropists and individual investors.

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What is a Donor Advised Fund?

Definition

A donor advised fund (DAF) is a tax-preferred philanthropic vehicle administered by a public charity. Organizations, families or individuals establish a DAF with an initial tax-deductible contribution to a public charity.  The contribution is invested and donors can recommend grants to qualified nonprofit organizations over time.

Benefits

With a donor advised fund you can:

  • Receive an immediate tax deduction and make grants over time
  • Donate illiquid assets such as real estate and securities and use the proceeds to support multiple charities
  • Create a charitable legacy by naming successor(s) to the account
  • Nominate your own independent investment advisor to manage the assets (minimums apply)

A donor advised fund also provides tax advantages:

  • Control Over Timing of Tax Deduction: You can separate the timing of the tax deduction from the distribution of donation and receive tax deductions when it's most advantageous, while continuing your philanthropy over time
  • Tax Savings on Capital Gains: If you donate appreciated assets such as securities or real estate, you may avoid capital gains tax on the appreciation*
  • Tax-Free Growth: The assets in your account appreciate tax-free

*This does not constitute tax advice and we encourage you to consult a tax-planning expert for guidance.

Comparison of Charitable Vehicles

 

Legal Information

A contribution to the Giving Fund represents an irrevocable contribution to ImpactAssets. Contributions are tax deductible, are not refundable, become subject to ImpactAssets’ control and discretion once made and shall not be deemed a separate trust fund held by ImpactAssets in a trustee capacity.

Donors may select an investment allocation from among approved investment options, but investment decisions rest entirely with ImpactAssets. Donors can recommend grants to charitable organizations from their Giving Fund, but the final decision on all grants rests with ImpactAssets.

Grants may not be used to benefit the Giving Fund Donor or members of their families.

The assets of all Giving Fund accounts are commingled with those of ImpactAssets in general.

See the Giving Fund Program Circular for a complete discussion.