A donor-advised fund (DAF) is a flexible, tax-savvy way to set aside funds to support the charities and organizations you care about most, like Indiana University. It’s a contractual relationship between a donor like you and a sponsoring organization, such as Fidelity, Schwab or independent charitable foundations. After designating a charitable contribution, the sponsoring organization owns the assets and administers the fund. You retain advisory privileges over the charitable donations that are distributed from the account. This arrangement qualifies you for an immediate income tax deduction for the amount of the contribution, even though funds won’t be distributed until you suggest supporting a specific charity, such as Indiana University.
A DAF offers remarkable versatility in letting you choose how and when to give. This unique “hands on” philanthropy is a personally satisfying giving option that also provides freedom from the administrative responsibilities of managing the account, including investment decisions.