Giving Through Your Donor-Advised Fund

A donor-advised fund (DAF) is a charitable investment account with a sponsoring organization that has immediate tax benefits and allows donors to recommend grants to qualified non-profit organizations over time. It makes managing your charitable contributions and fulfilling your philanthropic goals simple and easy.

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Chariot’s technology follows the same security standards utilized for linking bank accounts to financial applications like Venmo. No grants will ever be submitted without your verification and consent, ensuring that you are fully in control of your donations. Chariot is dedicated to maintaining the highest security standards, so you can give with confidence.

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GIVE: Make a tax-deductible donation by establishing a DAF account and donating cash, stocks, or non-publicly traded assets to be eligible for an immediate tax deduction.

GROW: Grow your donation, tax-free while you decide which charities to support.

GRANT: Direct your support to charities either right away or gradually, according to your preference and at your pace.

DAF Account: Charitable investment account for the sole purpose of supporting charitable organizations that are important to the donor.

Donor Advisor: The donor who makes recommendations on who and when to make a grant.

DAF Sponsor or Sponsoring Charitable Organization or Sponsoring Organization: A 501(c)(3) public charity that manages and administers individual DAF accounts, such as Fidelity Charitable and Schwab Charitable.

Grants: Donations to qualified non-profit organizations.

Simplicity – The DAF sponsor handles the record-keeping, disbursements, and tax receipts.

Flexibility – Timing of your tax deduction can be separate from your charitable decision making.

Tax Efficiency – Contributions are tax-deductible, and any investment growth in the DAF is tax-free. You can also donate long-term appreciated securities and avoid capital gains taxes so you can then support multiple charities from one block of stock.

Family Legacy – Build or continue a family tradition of philanthropy.

Low Costs – There is no startup cost to establish a DAF, though there may be a minimum contribution determined by the DAF Sponsor.

No Transaction Fees – Once approved, 100% of your recommended grant goes directly to your chosen charity.

Privacy – You can choose to remain anonymous.

1. Contribute: Make an irrevocable contribution to a sponsoring charitable organization to establish a DAF
2. Name Your Fund: Choose a name for your DAF (e.g. “The John Doe Fund”). The DAF sponsor will then allocate the charitable contribution to the donor‘s DAF.
3. Advise on Investments: The donor-advisor will work with the DAF Sponsor to guide how the fund’s assets are invested.
4. Recommend Disbursements: The donor-advisor suggests grants (donations) to IRS-qualified non-profit organizations (Disbursements, must meet the DAF Sponsor’s grant-making criteria).
5. Grant Approval: Once approved, the grant is made to the chosen non-profit organization.

A succession plan for your DAF states your wishes about how you would like any remaining funds in your DAF to be used at your passing. Options usually include listing charitable organizations you prefer to receive a final distribution, naming successor advisors such as adult children, or allocating funds to the DAF sponsor (usually the default option). Your DAF sponsor can share the options specific to you and let you know how to indicate your preferences.

If you would like to name The Greater Boston Food Bank as a beneficiary of a final distribution from your DAF, thank you! You will likely need our tax ID number, which is: 04-2717782. Once you have done so, kindly let us know so that we may welcome you to the Kip Tiernan Society, a growing group of supporters who have thoughtfully included GBFB in their estate plans.