What is a donor advised fund? A donor advised fund (DAF) is a type of giving program that allows you to combine the most favorable tax benefits with the flexibility to support your favorite charities easily. An increasingly popular charitable vehicle, DAFs are an excellent way to both simplify your charitable giving and facilitate your strategic philanthropic goals.

How does it work?

1. Establish your DAF by making an irrevocable, tax-deductible donation to a public charity that sponsors a DAF program
2. Advise the investment allocation of the donated assets (any investment growth is tax-free)
3. Recommend grants to qualified public charities of your choice

What are the main advantages of a DAF?

• Simplicity - The DAF sponsor handles all record-keeping, disbursements, and tax receipts.
• Flexibility - Timing of your tax deduction can be separate from your charitable decision making.
• Tax-efficiency- Contributions are tax-deductible and any investment growth in the DAF is tax-free. It is also easy to donate long term appreciated securities, eliminating capital gains taxes and allowing you to support multiple charities from one block of stock.
• Family legacy - A DAF is a powerful way to build or continue a tradition of family philanthropy.
• No start-up costs - There is no cost to establish a DAF. However, there are often minimum initial charitable contributions to establish the DAF (typically $5,000 or more).** 
• No transaction fees - Once approved, 100% of your recommended grant goes to your qualified public charity of choice. **
• Privacy if desired- Donors may choose to be acknowledged or remain anonymous.

** Sponsoring organizations generally assess an administrative fee on the assets in a DAF. These fees vary by sponsoring organization.

Will I receive membership benefits from the BSO for an annual fund donation made through a DAF?

Since the original contribution to the DAF provided the maximum tax deduction, the donor-advisor cannot receive any benefits that would change the value of the tax deduction. However, the donor-advisor can receive benefits that have insubstantial or no fair market value. 

Whom should I contact with questions regarding giving to the BSO through a DAF?

Additional questions about making a gift to the BSO through a DAF should be directed to individual gift officers or to the Friends of the Boston Symphony Orchestra at 617-638-9276 or friendsofthebso@bso.org.

BSO DAF Frequently Asked Questions
For more information on giving to the BSO through a donor advised fund, please click here.