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Donor Advised Fund (DAF)

A donor advised fund can be a great vehicle to support organizations and causes that matter to you. When you set up a DAF at a sponsoring organization (e.g., a Jewish federation, a community foundation, or a financial services firm), you get an immediate tax deduction and make gifts to Hebrew Free Loan and other charities during your lifetime, on your own timeline. When you pass away, your family can carry on your legacy of giving.

Are you looking for a way to benefit Hebrew Free Loan both now and in the future? Would you like to simplify your annual and lifetime charitable giving? A donor advised fund (or DAF) might be a great solution for you.

Benefits of a donor advised fund

  • Establish a flexible vehicle for annual charitable giving
  • Benefit from a more tax and cost efficient alternative to a private foundation
  • Receive an estate tax deduction and savings from your DAF contributions
  • Obtain a charitable income tax deduction in the year you contribute to your DAF

What is a donor advised fund (DAF)?

A donor advised fund is a powerful way to simplify your charitable giving, supporting the causes you care about today and inspiring future generations to continue your legacy of generosity. Once you establish a DAF, you can use it to fund a gift or grant to Hebrew Free Loan. Some DAFs also offer the opportunity to make an impact investment in the form of an interest-free loan to Hebrew Free Loan.

Donor advised fund video

How a donor advised fund works

  1. You make an initial, irrevocable gift contribution of cash or stock to fund a DAF at a sponsoring organization (e.g., a Jewish federation, a community foundation, or a financial services firm like Fidelity or Schwab).
  2. The assets in your DAF grow tax-free.
  3. You make recommendations at any time on gifts, grants, or, in some cases, loans to be made from your DAF to Hebrew Free Loan or other eligible charitable organizations.
  4. You can designate family members or friends as successor advisors, so they can continue recommending charitable gifts from your DAF after you pass away.
  5. You can designate Hebrew Free Loan as a charitable beneficiary of your DAF, so any remaining DAF funds are distributed according to your wishes after you pass away.

More on donor advised funds

A donor advised fund has several advantages when compared to a private foundation. The start-up time and costs are minimal for DAFs, and gifts to DAFs are generally deductible at fair market value. A DAF is also not subject to the distribution requirements and certain excise taxes faced by private foundations.

Contact us

If you have any questions about donor advised funds, please contact us. We are happy to assist you.