Donor Advised Fund (DAF) Giving
What is a donor advised fund?
How does it work?
- Establish your DAF by making an irrevocable, tax-deductible donation to a public charity that sponsors a DAF program
- Advise the investment allocation of the donated assets (any investment growth is tax-free)
- 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 firstname.lastname@example.org.
BSO DAF Frequently Asked Questions
For more information on giving to the BSO through a donor advised fund, please click here.