Why Nonprofits Should Develop a Donor-Advised Fund Strategy
What is a donor-advised fund?
With donor-advised funds (or DAFs), donors can make a contribution to a fund and receive an immediate charitable tax deduction. The fund can grow tax-free, while the donors can distribute gifts (or grants) to nonprofits from the fund over time.
Donor-advised funds are managed through a sponsoring organization, which commonly are commercial investment management companies or community foundations.