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A donor advised fund or DAF is a charitable giving vehicle that provides an easy way for someone to donate assets to multiple charitable organizations in Ohio or other states without the hassle of paperwork for multiple donations. A DAF also provides significant tax deductions for gifts to charity and gives the donor some control over which organizations receive funds without burdening the donor with administrative duties or excessive costs.
The Dayton, OH planned giving attorneys at our firm have found that donor advised funds are an excellent way for individuals and families to create a legacy that will benefit their communities for generations to come.
A donor advised fund is established with a gift of cash or assets. The fund is created by a public charity which has the responsibility of managing the fund and has final control over which organizations receive funding. The donor is given advisory status and may advise the fund manager on which charities to fund and how much to grant them.
DAFs are similar to private foundations in terms of their ability to benefit multiple charitable organizations. But Ohio and federal laws make DAFs easier to get into, less expensive to start and operate, much less hassle for the donor and more favorable for tax deductions. The trade-off is that donors ultimately don’t have control over where the funds are granted to, though it is very rare for the fund manager to go against a donor’s wishes as long as the target charities qualify under IRS rules.
Advantages
Disadvantages
There are many things to consider before establishing a donor advised fund. In Ohio, planned giving attorneys at Gudorf Law Group, LLC, can help you determine whether a DAF is right for you and assist in selecting charitable organizations in Ohio and other aspects of charitable planning. Arrange a free consultation with our Ohio planned giving attorneys by calling 1-877-483-6730.
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