September 24, 2025

Have You Considered a Donor Advised Fund for Your Charitable Giving?

Charitable giving is about more than dollars—it’s about making a difference in ways that matter to you. At the same time, gifts can have financial considerations. A Donor Advised Fund (DAF) helps you give with both heart and wisdom, allowing you to support the causes you love while simplifying your giving and easing tax concerns. In preparation for Donor Advised Fund Day on October 10, we reached out for some information on DAFs and how donors can use it.   

“A donor-advised fund (DAF) is a powerful and flexible charitable giving vehicle that allows individuals to make a charitable contribution, receive an immediate tax deduction, and then recommend grants to nonprofit organizations of their choice over time,” says Geoff Christy with the Foster Group in Des Moines, “It’s like a charitable investment account where donors can contribute cash, securities, or other assets, and those funds can grow tax-free while they decide which causes to support.” 

It's a choice that EveryStep donors Joanne & Dan McPhail made. They say their fund simplifies their charitable giving plan.  “When we opened our Donor Advised Fund, we were looking for a way to make giving simpler, align with our charitable goals and be as efficient as possible,” the McPhail’s say, “Now, instead of scrambling at year’s end or keeping track of scattered donations, we have one place where all our charitable gifts live and can easily be directed at any time when it is convenient for us.” 

The timesaving isn’t just limited to the end of the year, either.  “What we didn’t expect was how much joy it would bring. With just a few clicks, we can support the causes closest to our hearts—anytime throughout the year,” the McPhail’s say, “It feels good to know that our giving is organized, efficient, and fits with the values we care about most.” 

After consulting with a tax advisor, Christy recommends individuals consider these six potential benefits: 

  1. Immediate Tax Deduction: Donors receive a tax deduction in the year they contribute to the fund, even if they don’t distribute the funds to charities until future years.
  2. Flexible Timing: Grants to nonprofits can be made over months or years, allowing donors to support causes when the timing is right for them. 
  3. Tax-Free Growth: Contributions can be invested and grow tax-free, potentially increasing the amount available for giving. 
  4. Simplified Recordkeeping: One receipt for tax purposes even if donors support multiple organizations. 
  5. Privacy Option: Donors can choose to give anonymously through the fund. 
  6. Family Engagement: DAFs can be a great tool for involving family members in charitable decision making and legacy planning. 

“DAFs are especially appealing for donors who want to be strategic with their philanthropy, simplify their giving, and potentially maximize their impact,” Christy says.  

For the McPhails, the flexibility of a donor advised fund has been exactly what they were looking for.  “Funding a Donor Advised Fund can be done with cash or appreciated assets, and it may also provide tax benefits - we always recommend checking with your tax advisor,” the MacPhails say, “For us, it has been a simple tool that makes generosity so easy.”