3rd October 2019
What is a Donor Advised Fund (DAF)?
An easy to establish, tax-effective vehicle for individuals and families giving globally. A DAF is a time and cost-effective alternative to a foundation. To find out more read: ‘The Difference between a DAF and Grant Making Foundation’.
Prism the Gift Fund’s guide to starting a Donor Advised Fund in 5 simple steps:
- Choose the name of your Donor Advised Fund, as you would name a foundation. Examples include: The Joe Bloggs Foundation, The Bloggs Family Foundation, The Joe Bloggs Charitable Trust. Remember, the annual total of charitable donations remains anonymous, but donors can be recognised for their gifts with naming rights and acknowledgments in a charity’s annual accounts/brochure for example.
- Nominate a successor – With a Donor Advised Fund, you can choose to have nominated successors. For example, when starting a Donor Advised Fund, you may want to name your spouse/partner or children as the successors. They can then continue gifting without the need to set up an entirely new structure such as a trust or foundation which requires governance, and legal and financial oversight.
- Make a gift to your Donor Advised Fund. This can be cash (Prism the Gift Fund is piloting crypto currencies), shares, artwork, property or a legacy gift. These all come with relevant tax relief dependent on the donors’ circumstances. Use Prism the Gift Fund’s calculator to calculate the potential benefits for you and the charity.
- Choose which firm to have the balance of the Donor Advised Fund asset managed by. At Prism the Gift Fund, you can have the balance of your assets managed by a firm of your choosing. Donors often select where their personal wealth is held.
- Start making grants to charities close to your heart. At Prism the Gift Fund, you can make grants to UK charities, overseas charities, social enterprises, and not-for-profits in accordance with UK charity law. Prism provides an efficient, personable and fully tailored philanthropy solution, conducting due diligence on grant recipients so that you can gift with peace of mind.
If you’d like to hear more about starting a Donor Advised Fund and Prism’s DAF service, please Contact Us and get in touch with one of our relationship managers today.