October 10 is Donor-Advised Fund (DAF) Day. If you don’t know what a DAF is, you aren’t alone. Let’s demystify this simple, tax-efficient way to support nonprofits such as San Francisco Zen Center.
What is a DAF?
A Donor-Advised Fund is a tax-advantaged charitable giving account. Donors contribute stocks or other assets to a fund managed by a sponsoring organization, such as a community foundation, public charity, or a financial institution. Over time, donors recommend grants (that’s the donor-advised part) to nonprofit organizations. These grants are then distributed to the nonprofit organizations.
Why give through a DAF?
For many donors, a DAF can make charitable giving easier and more strategic. Depending on your circumstances, benefits may include:
- Contributing stocks or other assets to a DAF may qualify for a charitable tax deduction when you make the gift.
- Donating eligible appreciated securities or other assets may help reduce or eliminate capital gains taxes that would otherwise apply if you sold them yourself.
- Giving now and granting later allows you to make a charitable contribution in a year when it is most advantageous for you, and decide over time which nonprofits you would like to support.
- Simplifying your giving by creating one convenient place to organize and manage your charitable contributions.
Learn about starting a DAF to direct your charitable giving.
Have questions about making a gift from your DAF?
If you already have a DAF, recommending a grant to SFZC can be a simple way to support the teachings, programs, temples, land, and community that make practice possible.
Our Development team would be happy to help. Please contact us at development@sfzc.org.
