Donor Advised Funds

A Donor Advised Fund (DAF) is a popular tool to simplify annual giving and recordkeeping. This type of fund helps you control the timing of gifts because you may take the tax deduction during the year you place funds in your DAF, while recommending grants from your fund in the future.

A DAF offers a convenient way to use appreciated assets to make a donation that will benefit several organizations.

  • You may create an expendable DAF so the full value of the fund will be available for grants to the nonprofit organizations you care about.
  • No minimum amount is required to open or maintain an expendable DAF. 
  • You recommend DAF grants in amounts of $100 or more to your selected charity, house of worship or other qualified nonprofit organization. 
  • You may recommend distributions from your fund at any time by simply submitting the Grant Recommendation online or by mail.
  • LCF researches the tax status of recommended recipients and distributes all approved grants.  
  • You can make donations to your fund, grant from your fund and view past grant history all online when you log in on this website.
  • You will receive an annual statement and necessary paperwork for tax preparation, avoiding the task of looking for individual charitable receipts at annual tax planning time.
  • You may create your Donor Advised Fund as an endowed fund or as fully expendable. You may designate successor advisors to recommend grants when you no longer are able to do so.

IRS restrictions state that your fund may not make a grant that satisfies a pre-existing or personal pledge or results in an exchange of goods, services or personal benefit. Prohibited benefits include tickets or tables to fundraising events, preferred parking or seating, the purchase of charitable items at auctions, or grants to individuals either directly or indirectly. DAFs cannot receive IRA qualified charitable distributions per IRS tax rules. 

No professional fees are charged on expendable DAFs that are held only in money market funds or other cash equivalents. Any interest earned on such funds is retained to support LCF. If the donor chooses one of the available investment options for DAFs with a balance of $10,000 or more, the professional fee schedule applies as described on investment options for DAFs. 

To open a Donor Advised Fund, complete this form and LCF will create a two-page agreement and send it to you for your review.

Donor Advised Funds and Family Foundations

A Donor Advised Fund can serve as a Family Foundation. This illustration compares Donor Advised Funds and Private Foundations.

Copies of our Donor Advised Fund and related policies are available upon request. We encourage donor advisors to use their donor advised funds regularly in furtherance of their charitable goals. LCF has developed policies and other resources to ensure our donors understand how to make the most of their donor advised funds. Please contact us for more information.

Open a Fund
Recommend Grants
Investment Options
Family Foundations

“I’m a raving fan of the work done at the Lincoln Community Foundation. Donor Advised Funds are extremely valuable planning tools for my clients who have a charitable heart and also the desire to be as tax-efficient as possible.”   
Jeff Johnson, Buckingham Strategic Wealth