Learn More About Donor-Advised Funds
A donor-advised fund or DAF is a simple, flexible, and tax-efficient way to support the causes you care about. Contributions to a DAF may qualify for a charitable tax deduction while retaining the ability to recommend grants to FRESHFARM. DAFs make philanthropy accessible—donors don’t need to be wealthy to open a DAF and give in a meaningful way.
DAFs may allow donors to:
- Contribute a wide range of assets with ease
- Potentially maximize their tax benefits
- Invest donations for tax-free growth to increase their future giving capacity
- Choose one-time or recurring gifts that fit their goals
- Support multiple organizations from a single account—simplifying recordkeeping
Most donors use DAFs to align their charitable goals with financial planning—all while connecting families and children in need to fresh, nutritious food grown by our local farmers.
Donor-advised funds (DAFs) can be set up through a financial institution or a community foundation. Once established, individual donors can contribute cash, securities, or other assets to their DAF and may be eligible for an immediate tax deduction. Contributions can be invested for tax-free growth, allowing the donor to recommend grants over time to any IRS-qualified public charity.
To learn more about establishing a DAF, contact your financial advisor or community foundation. Examples include the Greater Washington Community Foundation, which serves the entire region, the Arlington Community Foundation for Northern Virginia, and the Capitol Hill Community Foundation for a specific DC neighborhood.
DAFs may allow donors to:
- Contribute cash, stock, or other assets into one charitable account.
- Potentially receive an immediate tax deduction and eliminate capital gains on donated stock.
- Simplify giving with one place for gifts and record-keeping.
- Support multiple charities with one-time or recurring grants.
- Build a lasting legacy by involving your family and directing funds beyond your lifetime.
Katie and Daniel care deeply about ensuring everyone in their community has access to fresh food and about supporting local farmers. They decided to open a $10,000 donor-advised fund (DAF) through their local community foundation.
Creating the fund gave them the flexibility to take their time in deciding where to direct their support. After learning more about food insecurity in the Washington Metro Area, Katie and Daniel recommended grants to FRESHFARM—helping children, families, and seniors access fresh, healthy food. The foundation issued the grant from The Johnson Family Fund, which Katie and Daniel named in honor of Daniel’s parents.
They also chose to designate FRESHFARM as a future beneficiary of their fund. In doing so, they are ensuring their commitment to healthy food and thriving farmers will continue for generations.