Donor-Advised Funds

Donor-Advised Funds (DAFs) are charitable investment accounts that help you manage donations to the organizations that mean the most to you — like the University of Richmond. They are, in essence, personal savings accounts that you set up with a nonprofit organization (i.e. sponsoring organization), or a brokerage firm or bank that has an existing Donor-Advised Fund, to manage your charitable giving.

When you contribute cash, securities, or other assets to DAFs, you qualify for a federal income tax deduction, and the money grows tax free as you as consider the timing and impact of grants you request from the fund to support charitable organization(s) of your choice.

How Donor-Advised Funds Work

  • You make an irrevocable contribution of cash, stock, real estate, or other personal assets — the funds cannot be returned to the donor or any other individual or used for any purpose other than grantmaking to charities
  • You receive the maximum tax deduction allowed by the IRS
  • You name your Donor-Advised Fund account, advisors, and any successors or charitable beneficiaries
  • Your contribution is placed into a Donor-Advised Fund account where it grows tax free until ready to be distributed
  • When you are ready, you can recommend grants from your account to qualified charities

You can contribute to a Donor-Advised Fund as frequently as you like. You may also eliminate capital gains taxes if you contribute appreciated assets instead of cash. Once your fund is established, you can then advise the fund administrator on how much and how often to distribute a grant to a qualifying charity like Richmond.

Make a Grant to Richmond

As a qualified charity, the University of Richmond accepts and welcomes grants made through DAFs to support everything from annual gifts to named scholarship or other endowment giving. To learn more about supporting Richmond through a grant from your Donor-Advised Fund, contact the Advancement Operations team within Advancement Systems.