What Is a Donor-Advised Fund (DAF)?
A donor-advised fund (DAF) is an investment account with the sole purpose of supporting charitable organizations you care about. When you contribute cash, securities or other assets to your DAF, you’ll enjoy an immediate tax deduction — and easily support the Arsht Center and other charities that matter to you, on your schedule.
You can make one-time gifts or set up recurring monthly donations. You can give to one charity or multiple, all from a single DAF.
DAFs are the fastest-growing charitable-giving vehicle in the United States because they are one of the easiest and most tax-advantageous ways to give. In addition to providing financial support to charities, DAFs can provide immediate income tax deductions for donors, as well as potentially reduce capital gains taxes and estate taxes.
If you include the Arsht Center in your DAF plans, please use our legal name and federal tax ID.
Legal name: Adrienne Arsht Center Foundation Inc
Address: 1300 Biscayne Blvd., Miami, FL 33132
Federal tax ID number: 26-2567808
Still learning about DAFs? Here is an example of how they work
Eliza and Alexander want to give back to their hometown by putting their money where it will do the most good. They establish a $25,000 donor-advised fund with a community foundation (or you can also set it up through your preferred financial institution).
The couple receive a federal income tax charitable deduction for the amount of the gift. They also get the time they need to decide which charities to support.
After researching community needs with the foundation’s staff, Eliza and Alexander recommend grants for the Arsht Center (which they’ve supported for years) and a local animal shelter. Their community foundation presents the charities with checks from the Philip Fund, which Eliza and Alexander named in honor of their son. They name the Arsht Center as the beneficiary to receive the account balance after their lifetimes. Eliza and Alexander are delighted to start this personal legacy of giving.
What are the benefits of using a DAF?
- Easily contribute a wide range of assets to a single, philanthropic fund.
- Centralize your giving and record-keeping in one location.
- Make an impact in the world — and enjoy an immediate tax deduction.
- Sustain the charities most important to you by establishing recurring DAF gifts.
- Your DAF sponsor can help you identify and vet qualified nonprofit organizations that align with your values.
- Respond quickly as crisis moments arise.
- Eliminate capital gains on donated stock.
- Invest your donation for tax-free growth.
- Support your legacy planning — many DAF sponsors allow you to pass the remaining funds in your account at your death to your favorite charities.
- Start a legacy of giving — involve your children and discuss why giving is important to you.
The first annual DAF Day is today!
You can commit funds from your DAF any time of year, but DAF Day is a new kind of giving day. A collaborative group of leading nonprofits, fundraising platforms and DAF providers are coming together to activate our collective audience of millions of donors for a single day on unprecedented generosity.
Approximately 37% of DAF accounts go unused every year, and maybe this day will help change that! If you have a DAF, we hope you will join in the movement and commit 10% of your DAF to organizations you care about on 10/10.
Do you have questions we might be able to answer about DAFs?
Please contact Maddy:
Ms. Maddy Weigel
Director, Estate and Gift Planning & Associate Director, Major Gifts
mweigel@arshtcenterfoundation.org
786.468.2051