What is a Donor Advised Fund?
A donor advised fund (DAF) is a charitable giving program that allows you to combine the most favorable tax benefits with the flexibility to support your favorite causes. If you have a donor advised fund, DAF Direct enables you to recommend grants to the American Red Cross, directly from your DAF (as long as your DAF’s sponsoring organization is participating).
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 the charities you support, with the option of being recognized or remaining anonymous.