The Benefits Of Using A Donor-Advised Fund

At Corus, one of the greatest joys we have is helping families give with greater impact and tax efficiency. A powerful tool that simplifies charitable giving while maximizing benefits is a Donor-Advised Fund (DAF).

WHAT IS A DAF?

A DAF is a charitable giving account that allows donors to make contributions, receive an immediate tax deduction, and distribute funds to charities over time. Originally designed for those making large year-end contributions, DAFs have since evolved into a widely used vehicle for strategic giving.

Since the DAF sponsor legally owns the funds, selecting the right one is crucial. Stability, financial strength, and alignment with your values matter. Corus collaborates with leading Christian DAF sponsors—Waterstone, National Christian Foundation, and The Signatry—ensuring contributions support causes consistent with faith-based principles. Meanwhile, major sponsors like Schwab and Fidelity offer options without theological guidelines.

WHY USE A DAF?

Over the past three decades, DAFs have become a go-to tool for charitable families. Here’s why many Corus clients choose them:

1. Tax Efficiency & Simplicity – Since tax deductions occur when funding the DAF (not when distributing to charities), donors can consolidate giving into fewer, larger transactions, simplifying tax reporting.
2. Maximizing Tax Savings with Appreciated Assets – Donating stocks, mutual funds, or other appreciated investments directly to a DAF avoids capital gains tax, increasing the value of the gift while reducing taxes. The DAF then liquidates the assets tax-free, allowing donors to give to multiple charities on their preferred timeline.
3. Streamlined Giving – Acting like a charitable bank account, DAFs make managing donations effortless. Families can schedule recurring gifts, make anonymous contributions, and organize their giving without the hassle of tracking individual donations.
4. Unlocking the Power of Complex Assets – Beyond stocks and funds, business interests and real estate can be gifted through a DAF, offering significant tax advantages. Given the technical considerations, Corus provides expert guidance to structure these contributions effectively.
5. A Smarter Alternative to Private Foundations – Unlike private foundations (PFs), DAFs require no donor-led reporting and have fewer restrictions on giving to charities with personal or family connections. They provide greater flexibility without the administrative burden of a PF.
6. Connecting Givers to Causes & Community – Many DAF sponsors host donor events, facilitate connections with vetted charities, and share insights on impactful giving strategies. This can expand a donor’s philanthropic reach and align their giving with their passions.

WHEN DOES A DAF MAKE SENSE?

For families committed to charitable giving, a DAF is often a natural fit—especially as assets approach $5 million. While they streamline giving, they are not ideal for immediate fundraising needs (like school auctions) or personal charitable efforts benefiting individuals.

At Corus, we encourage families to explore DAFs as a way to increase tax benefits, simplify giving, and create a more intentional approach to philanthropy. If you’d like to learn how a DAF can enhance your family’s charitable strategy, we’d love to guide you through the process.