Covid-19 Update: Prism the Gift Fund is fully operational and able to respond to the needs of our clients. If you would like further information on Prism's services and how we can facilitate emergency programmes and other charitable initiatives during this time please contact info@prismthegiftfund.co.uk.

29th October 2019

If philanthropy is your passion or you’re a regular charity donor and want an efficient, bespoke charitable structure through which to channel your giving, starting a Donor Advised Fund is an obvious option.

Donor Advised Funds (DAFs) are 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 and simplifies the giving process. If you’d like to find out more read: ‘The Difference between a DAF and Grant Making Foundation’.

When considering starting a Donor Advised Fund, donors and their advisors need to be aware of the differences between the DAF providers (a non-profit entity). Some are Dual Tax qualified (suitable for US Donors), others are also banks (charging a percentage on monies under asset management) and some can only give to UK charities.

Prism the Gift Fund, a UK registered charity and DAF provider, enables donors to contribute a mix of assets to their DAF: cash, shares, property, legacy gifts, artworks and now Prism the Gift Fund is piloting crypto donations. On donation, they receive immediate tax relief; donors should consult with accountants and tax advisers on their eligible tax relief. Prism the Gift Fund facilitates international charitable donations around the world and itself is not a bank but allows donors to have a balance of assets managed by a firm of their choice (often where their personal wealth is held).

The rules of using Donor Advised Funds:

  • Donors need to remember that on gifting to a DAF, they’ve made an irrevocable donation to charity and cannot get it back.
  • They can then recommend or advise which charity a grant from the DAF is made to; though this will ultimately rely on the receiving charity meeting the due diligence standards of the DAF provider.
  • Some DAFs have a minimum amount to open an account.
  • Source of funds must be proven on donation into the DAF.
  • All DAFs charge a fee, be it investment and/or administrative.
  • Donors can give anonymously or be recognised for gifts.
  • Donors can name successors of the DAF.
  • There can be no private benefit from a gift to a charity. Speak to a Relationship Manager at Prism to discuss the rules around pledging at dinners or auctions.
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