Donor Advised Fund FAQ
What is a Donor-Advised Fund (a “DAF”?
A DAF is an account that is maintained by YI Aish (the Shul) into which a donor contributes contributions. The account funds are invested by YI Aish, at the direction of the Donor should they wish, and are available to be granted to other organizations consistent with the guidelines established by YI Aish.
Why is a DAF better than direct giving to other organizations?
With a DAF, you can receive an immediate tax deduction for your charitable contributions and then make recommendations over time for the further granting of the funds to public charity grantees.
How does a DAF help my family with its philanthropic goals?
You can make contributions to your DAF and then family members, for generations to come, can make recommendation on the charitable grantees of the DAF’s funds, consistent with YI Aish’s giving guidelines.
Why would I use a DAF instead of forming my own private foundation?
A DAF provides administrative ease and higher deductibility limits for contributions over a private foundation. A private foundation is a separate legal entity that requires IRS and state reporting that is not required with a DAF. Because a DAF is an account within YI Aish, YI Aish will take care of all administrative and reporting obligations regarding the DAF.
In addition, deductible cash contributions to private foundations may be deducted only up to only 30% of your adjusted gross income, while contributions to a DAF are deductible up to 60% of your adjusted gross income. Contributions of property to a DAF also receive more favorable treatment than contributions to a private foundation.
Who are permissible grantees of DAF funds?
You can recommend grants from your DAF to public charities that are engaged in activities consistent with the values of YI Aish. Prior to making a grant from your DAF, the Shul will verify that the intended grantee qualifies as a public charity and meets the guidelines set forth by YI Aish.
How do I open a DAF?
All you will need to do is fill out the simple application form below and make a minimum contribution of $10,000.00 in cash, securities or property.
How are grants made from a DAF?
You will provide written recommendations to YI Aish on the grants you would like to see made from the DAF, either by letter, email or online. We will then send you a notification when the grant is approved and paid.
In Summation: What are the main advantages of a DAF over a Private Foundation?
A DAF has a number of advantages over a private foundation, including
- Administrative ease (DAFs are much simpler to set up)
- Deductibility of contributions (DAFs have enhanced deductibility for contributions)
- Ability to involve future generations in grant-making decisions without the need or expense of an ongoing private foundation
- No annual filings for DAFs with the IRS or state agencies
Who should I contact for more information?
If you are interesting in setting up a DAF or have additional questions, please contact Rabbi Yitz Wyne at 702-271-3028 or RabbiYitzWyne@gmail.com and/or fill out the form below.