Frequently Asked Questions about Donor Advised Fund

  1. How quickly can I create a Donor Advised Fund (DAF) account? At AFA it takes less than a week. Once you submit a completed donor application your account is established and ready to receive contributions.
  2. How much do I need to open a DAF account? A contribution of $5,000 or more. Once your DAF account is created you can make subsequent contributions.
  3. Can my DAF account be named after someone other than me? Yes. Your DAF can have any name you choose.
  4. Can my DAF account have multiple successors? Yes. Your account assets can be split between multiple successors.
  5. What types of fees are charged to my DAF? 1% for deposits and .25 of 1% each quarter on the balance
  6. What happens to my DAF account after Donor's death or the death of Successor Advisor? The income and the principle of the DAF shall not be subject to any restrictions of the Agreement, shall be co-mingled with other funds or property of AFA Foundation, and shall be held, administered and distributed for such charitable, educational, and religious purposes as AFA Foundation, in its sole discretion, deems advisable.
  7. At what point is a contribution considered a charitable donation? A contribution becomes a donation when the asset is "out of the donor's control." This is determined by the type of asset you contribute as well as when and how it is transferred to your AFA DAF account.
  8. Can I contribute assets from my IRA account to my DAF? You can name your DAF as the charitable beneficiary of all or part of your IRA. You should consult your tax advisor to find out how this will affect your tax filing needs.
  9. Will I get a receipt for my contributions? Yes. AFA will provide you with an acknowledgement letter of your contribution(s).
  10. What happens to my contribution after it is accepted by AFA? The contribution, together with any further donations made by Donor to AFA Foundation, shall be held, administered and distributed by AFA Foundation in accordance with the terms of the DAF. AFA Foundation shall at all times have complete discretion to sell, invest and manage the assets comprising the DAF or the proceeds thereof.
  11. Are additional contributions to my DAF tax-deductible? Yes.
  12. How often can I make contributions to my DAF? You can contribute to your DAF at any time.
  13. Do I file my contributions receipt with my taxes at the end of the year? Yes.
  14. How are capital gains tax treated for gifts of appreciated securities? Since AFA is a 501(c)(3) charity, we do not pay a capital gain tax when we sell gifted securities. This will make it where you will not have to pay capital gains tax on securities you contribute to your DAF.
  15. Can I recommend a grant to pay a pledge I have made to a charitable organization? No.
  16. Can I make an anonymous grant from my DAF? Yes.
  17. Can my company match a grant that I recommend from my DAF? Yes, check the policies within your company.
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