Donor-advised funds are one of the ways that volunteers and donors financially support Global Volunteers’ work in communities around the world. Read on for details on what they are and how they can be used.
Passionate about the work of Global Volunteers? A donor-advised fund (DAF) is a flexible way to tailor your philanthropic giving for maximum impact. And, increasingly more volunteers and donors are supporting Global Volunteers this way. A DAF enables you to put your charitable dollars to work where the need is great in easy, tax-wise ways.
What Is a Donor-Advised Fund?
A DAF is administered by a third party such as a national sponsor, like Schwab or Fidelity, or a local community foundation. The third-party administrator enables donors to make an irrevocable charitable contribution and receive a tax deduction in the year the money is deposited, while recommending grants over time.
Most importantly, the DAF funds can only be granted to non-profits and must remain in the account. It cannot be returned to the donor. Think of a DAF as a checking account providing a tax benefit, while allowing the non-profit donations to be researched and granted at a later time. Once the contribution is deposited, the sponsoring organization has legal control over the funds, but it’s up to the individual donor to recommend when grants are made and to whom.
Who Typically Creates a DAF?
The majority (80 percent) of DAF holders are over 50. However, in 2019, 13 percent of all DAFs in the U.S. were opened by those ages 20 to 40. The National Philanthropic Trust reports this philanthropic vehicle has increased in popularity in recent years, as measured by both the number of accounts and the account size.
Your DAF Can Support Global Volunteers Now!
According to the most recent industry estimates, over $120 billion in the more than 700,000 national and community foundation-held DAFs is currently idle. This money could be educating children, feeding families, fighting infectious diseases, supporting mothers, and so much more.
If you have a DAF, you can recommend a grant to Global Volunteers for immediate program benefit. Designate funds to a particular project, make an unrestricted annual gift, or recommend recurring payments as part of our monthly donor program.
If you are interested in opening a DAF, or would like to learn more, several articles can walk you through the steps. This primer on the philanthropy site provides details, and this Kiplinger guide is a good place to start planning.
“Global Volunteers and the RCP Program is something we feel very strongly about. We were very impressed with the operation in Ipalamwa and want to continue to help in any way that we can. We decided to set up a quarterly distribution from our donor-advised fund to help the mothers and children in Tanzania. We hope this helps.”– Sustaining Global Volunteers Donor