How Does a Donor-Advised Fund Help You Give More Efficiently?

If you’re someone who often donates to charity, you may have heard of a donor-advised fund. A donor-advised fund (DAF) is a separate account that a donor can set up inside of a public foundation. DAFs have several key advantages for donors looking to make the biggest impact with their money. Here’s how a donor-advised fund can help you give more efficiently:

Organization - DAFs offer you a simple way to make charitable contributions. All of your information is organized in one place, which means you don’t need to pull out your credit card, checkbook, or bank information every time you want to donate. DAFs also help you keep track of your donation receipts from the nonprofits you donate to. Simply specify a grant you’d like to make to a charity you care about, how much you want to give them, and when you want them to receive it. Many DAFs also let you track the impact your donations have made over time, so you get to see the difference your money is making in the world.

Flexibility - DAFs also offer increased flexibility and tax efficiency because you can take the tax deductions in the present and pre-fund donations years into the future. This can provide considerable benefits if you are experiencing a high-income year or, on the other hand, if you have little funds to devote to giving. In this way, you can provide the most value to yourself and the charities you support.

Options - DAFs also allow you to donate various assets, like appreciated stock, bitcoin, or even shares in a private business. Donating these types of assets can bring valuable tax benefits to you, like avoiding capital gains taxes, and also allow the charities you support to receive more than if you had donated cash.

The Canadian National Christian Foundation can help you set up a donor-advised fund with a variety of investment options for your charitable dollars. We are a philanthropic organization that provides financial advice and wants to connect God’s money with God’s work. We help our donors build God's kingdom on earth by contributing to charities that are aligned with Christian values. CNCF makes it easy for you to contribute to an existing fund or open your own fund so you can make a difference with your money today!

About Canadian National Christian Foundation

CNCF is a community of givers who are seeking to advance the Kingdom of God by connecting the resources God has entrusted to them with His work on earth.

Similar to other public foundations, CNCF’s difference is the commitment of its staff and directors to the Word of God, its non-denominational history and status as a Christian foundation, and its ability to allow donors to donate anonymously, at a time and gift value of their choosing.  Learn more by visiting our website.