A Donor-Advised Fund (DAF) is a philanthropic giving vehicle that provides an immediate tax benefit to you and allows you to grant funds to charities of your choice, including the Rocky Mountain MS Center.
How it works
- Request a distribution from your DAF sponsor
- Be sure to use the Rocky Mountain MS Center’s Tax ID Number 84-0795455
- Indicate whether your gift is unrestricted or designated to a specific, program, or research.
Donor-Advised Funds Frequently Asked Questions
What is a Donor-Advised Fund?
A donor-advised fund (DAF) is an investment account that is used for charitable giving. It is composed of donations made by individuals and administered by a third party. The third party is called the sponsoring organization. It offers immediate tax relief and allows you to support your favorite charities immediately or over time.
How does a Donor-Advised Fund work?
A donor makes an irrevocable gift to a donor-advised fund and receives a tax deduction for the year the gift is made. Once the contribution is made, the sponsoring organization has legal control over the funds and the donor can make grant recommendations to the charity of their choice.
Are there any rules to owning a Donor-Advised Fund?
The IRS has specific guidelines around the kinds of organizations that are eligible to receive grants as well as the purposes these grants can serve. For example, grants can only be made to qualified charities and cannot be made to a person, or the donor cannot receive more than an incidental benefit, so it cannot be used for the admission price for an event of the gala.
What’s the difference between a Donor-Advised Fund and a direct donation?
The DAF donor receives tax documentation from the sponsoring organization of the DAF while a direct donor receives tax documentation from the charity.
Can a Donor-Advised Fund be used to donate to a private foundation?
Donor-Advised Funds can be used alongside private foundations.
What are the benefits of a Donor-Advised Fund?
Simple to establish. Flexible funding options. Easily Accessible. Tax advantage. Typically. requires no minimum distribution. Anonymous granting. Investment options
Is there a tax deduction for Donor-Advised Funds?
Yes, the DAF donor receives tax documentation from the sponsoring organization of the DAF.