Flexible. Anonymous. Accountable. Timely.
Donor Advised Funds
An easier way to give.
Donor-advised funds (DAFs) operate as a charitable investment account, existing for the sole purpose of supporting charitable organizations on behalf of the donor. Providing the infrastructure of a personal foundation, DAFs make giving an uncomplicated and well-guided process.
An International Trend.
While donor-advised funds are relatively new to New Zealand, they are a fast-growing form of philanthropy, and are gaining popularity on an international stage. As an example in the last 10 years there has been an almost 300% increase in the number of DAF’s operating in the United States to over 728,000 DAFs, who in 2019 collectively granted US$23.4 billion to charities.
How A DAF WorkS
Donors contribute a non-refundable donation into a DAF giving account and receive an immediate tax deduction. The donor maintains advisory privileges over how their account is invested and distributed. Donors can choose which charities they’d like to make grants to, and when these donations will be made. Alternatively, these contributions can be invested by the DAF, gaining tax-free growth over time.
Working through a DAF, a donor’s anonymity can be preserved, their tax benefits maximized, and they can receive guidance on how they give. The giving journey is streamlined, with the DAF managing all the administrative work usually associated with the running of a charity or private foundation.
Key Benefits of a DAF
They are Donor-Facing
A donor-advised fund understands and caters to the unique needs of the donor, including:
Choice. The donor determines where and when their funds are invested.
Anonymity. If desired, donors can request their grants are completely anonymous.
Accountability. Due diligence, best practice, and transparent reporting are paramount.
Timing. Funds can be gifted immediately, or they can be accumulated and invested for future maximum benefit.
They are simple.
All your giving is consolidated, as is your yearly tax claim.
They are efficient.
Especially for individuals or companies with fluctuating year – to - year income environments
They put the joy back into generosity.
You will join a like-minded community of Donors and make the journey in good company.