Donor-Advised Funds (DAFs)

Donor-Advised Funds (DAFs) are the fastest-growing charitable giving tool in the U.S. They provide a donor with a convenient, cost-effective way to manage donations while optimizing tax advantages.

DAFs are investment accounts that are used for charitable giving. They can be a sensible alternative to private foundations, providing flexible giving strategies with minimal overhead for the donor.

How does a Donor-Advised Fund (DAF) work?

When a donor contributes to a DAF, the donation becomes irrevocable and the sponsoring organization, such as a financial institution or community foundation, takes legal control of the funds. The donor receives an immediate tax deduction in the year the contribution is made. They can then recommend grants to a charity or charities of their choice either immediately or overtime. The sponsoring organization manages the administrative tasks, including due diligence on the charity or charities and issuing grants on the donor’s behalf.
Give DAF Grant
Please request for your name and address to be included by the sponsoring organization when they send the donation to WINGS Program, Inc. so we can thank you for your generosity.

What are the benefits of a DAF?

DAFs are tax-efficient giving accounts and offer many of the same benefits as other philanthropic giving options. Some of these benefits may include:
  • Avoid paying capital gains tax on long-term appreciated assets held for more than a year when contributed to a DAF.
  • Get an immediate tax deduction for the fair market value of contributions to a DAF the year the contribution is made, up to specified limits.
  • Easily contribute a wide range of assets to a DAF including cash, stock, cryptocurrency, real estate, investments, or other noncash assets.
  • Assets in your DAF grow tax-free.
  • Consolidate all your charitable giving through a DAF as the sponsor organization manages all record-keeping, disbursements, and tax receipts.
  • Support a charity you believe in through strategic giving over time.
  • A DAF is a powerful way to build or continue a tradition of family philanthropy.
  • Influence your DAF’s charitable gifts and your investment options, potentially increasing the funds available for future grants, without the effort or funds required to run a private foundation.
  • There are no DAF contribution limits.
  • DAFs currently do not have federally imposed minimum payout requirements; however, some financial institutions do require at least one grant within established time limits to maintain the account.
“Since we believe so strongly in the WINGS mission, we decided to make monthly donations from our Donor-Advised Fund at Fidelity Charitable. The process was extremely easy. After searching the Fidelity database for WINGS Program, Inc., we set up a monthly grant amount and submitted it for approval.
In short order, the grant was approved and now our support for WINGS is processed every month without any further input on our part unless we want to make any changes. It’s an easy way to support such a worthy cause.”
– Gage & Peggy – WINGS DAF Donors & Butterfly Club Members

Frequently Asked Questions

Yes, the IRS has specific guidelines for DAF. Grants must be made to qualified 501(c)(3) public charities and cannot benefit individuals. Grants should not provide more than incidental benefits to the donor. For example, grants cannot be used to pay for event tickets or personal expenses. Additionally, the sponsoring organization must ensure that all grants align with charitable purposes and are compliant with IRS regulation.
No, since the funds in the DAF were already deducted when they were given to the DAF.
Yes, recurring DAF grants can be set up. Check with the DAF administrator to establish grant frequency.
Yes, contact your fund administrator for the beneficiary designation form. Let us know of your gift because many fund administrators assume no obligation to notify a charity of your designation. The administrator also will not monitor whether your gift designations are followed. We would love to talk to you about your intentions to ensure that they are followed and to thank you for your generosity.

Contact Us

Fill out this form or contact Shelley Welch, Director of Annual Fund and Charitable Giving at swelch@wingsprogram.com or (847) 519-7820 x222

Disclaimer: WINGS Program, Inc., does not provide legal, tax, or financial advice. This material is prepared and made available to you for informational purposes only. You should consult professional advisors concerning legal, tax, or financial consequences of your charitable activities.

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