UNDERSTANDING THE OPTION
A donor-advised fund is sponsored by a public charity. After contributing to the fund, the donor may recommend grants to eligible organizations such as Shrine Mont, subject to the sponsor’s approval.
Grant recommendations can support current work or an accepted purpose. Donors should not receive more than incidental benefit in return, and a DAF grant is not a new personal charitable deduction because the deduction generally occurred when assets entered the fund.
Many sponsors also allow a succession plan. Depending on the sponsor, family members may continue recommending grants, charitable organizations may receive the remaining balance, or both approaches may be combined.
Why donors consider it
- Centralizes records and grant recommendations
- May accept appreciated assets through the sponsor
- Can involve family in charitable decisions
- May provide a simple charitable succession plan
A thoughtful process
- Sign in to your fund sponsor’s portal
- Search for Shrine Mont using verified organization information
- Enter the amount and any accepted purpose
- Include your name if you want Shrine Mont to acknowledge the grant
- Review the fund’s successor instructions
Points to discuss with your advisors
- The sponsor retains legal control of contributed assets
- QCDs generally cannot be made to donor-advised funds
- Do not promise a grant to satisfy a personal obligation
This overview is not legal, tax, investment, or financial advice and does not confirm that Shrine Mont can accept a particular asset or arrangement. Please consult qualified advisors and contact Shrine Mont before taking action.