Donor Advised Funds

A Donor Advised Fund, often called a DAF, is a giving vehicle that provides you with immediate tax benefits and the ability to support nonprofits you care about most. DAFs are an efficient and flexible alternative to private or family foundations or large firms like Fidelity.  With PDF your DAF can move resources quickly to support social justice and grassroots groups when it’s needed most. 

Why Choose PDF? 

PDF provides more than 30 years of experience in grantmaking to donors who are interested in funding specific interests.  Our participatory grantmaking process puts us in touch with small, grassroots organizations that are overlooked by traditional philanthropy.  PDF carries out the research, ensures the reporting, and manages the government’s requirements while the donor, with PDF staff advice, recommends groups for funding. PDF has a 4-star rating from Charity Navigator and Forbes Magazine highlighted PDF in its article, “How to Find the Right Donor Advised Fund (and Why).” 

As a DAF-holder, you will have access to a state-of-the-art donor portal to easily make grant recommendations and review your account. Depending on the size of your fund, you can take advantage of a variety of socially-responsible investment options that are consistent with your values. 

PDF’s donor advised funds program offers: 

  • Low minimum of $5,000 to establish. 
  • Advice on funding progressive organizations 
  • Competitive fee structure (1.25% on new money to the fund and no transaction fees) 
  • Commitment to getting the funds out the door to the organizations that need it most 
  • Anonymity for donors 

How do Donor Advised Funds work? 

Donor contributes assets to PDF, who will steward the funds 

Donor recommends grant awards to nonprofits with the support of PDF 

PDF distributes grant award funds to eligible nonprofits in the US or internationally (additional fees may apply).

 

How do grant recommendations happen? 

Grant recommendations are easy – simply send an email to your assigned PDF staff member with the organization name, amount, and any restrictions for the grant (the default is general operating support). Grant recommendations are processed on a regular and timely schedule, and PDF staff will communicate back when grant recommendations have been disbursed. Grant recommendations are normally disbursed within two weeks. The minimum grant size is $250. 

What considerations should I have in mind? 

  • Donations to PDF are easy, and in most cases, you can get an immediate tax deduction for cash, stock, or a number of other assets. These donations to PDF are irrevocable. 
  • Donors who make grant recommendations via a DAF cannot receive a material benefit from a grant recommendation (e.g., dinner tickets, participation in golf tournaments, etc.), and donors cannot make recommendations to individuals 
  • For an additional cost, donors can make international grant recommendations as well as 501(c)4 grant recommendations, with certain restrictions. 
  • PDF will work with donors to make sure that there is regular grant recommendation activity while a DAF is active. 
  • Donors have access to staff with a wealth of knowledge and experience at PDF. 

How do I open a donor advised fund?  

You can establish a DAF by completing a fund agreement and making a charitable contribution to fund the DAF. You will receive an immediate tax deduction and can start recommending grants right away.  

To learn how to set up your own donor advised fund, contact lora@peacefund.org