---
title: "What Is donor-advised fund? | Seek First Glossary"
description: "A donor-advised fund is a giving account. You give cash or assets to a sponsor, take the tax deduction in that year if you itemize, then recommend grants to..."
url: https://seekfirst.multisites.ai/glossary/donor-advised-fund
publisher: Seek First
phone: +1-866-398-4044
contact: https://seekfirst.multisites.ai/contact
---

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Giving

# donor-advised fund

A donor-advised fund is a giving account. You give cash or assets to a sponsor, take the tax deduction in that year if you itemize, then recommend grants to churches and charities over time.

A **donor-advised fund** (DAF) is a giving account held by a charitable sponsor. The IRS describes it as a fund in which a donor can, because of being a donor, advise the fund how to distribute or invest the amounts in it. You give to the fund first. You recommend grants later.

**For example:** you give $40,000 of cash to a DAF in December. If you itemize, you may be able to deduct it for that year. Over the next several years you recommend grants of $10,000 a year to your church and other ministries.

The gift to the fund is final. The sponsor holds legal control of the assets, and the IRS says you need a written acknowledgment from the sponsor that it has exclusive legal control. Your role is to advise, not to direct.

Why it matters: a DAF lets you decide the tax timing in a high-income year and the giving timing over years. It also keeps records in one place. It is useful for families with a big income event, such as the sale of a business or a stock vesting. Rules for deductions change, so ask your CPA.

Read the full [guide to donor-advised funds for Christian givers](https://seekfirst.multisites.ai/guides/donor-advised-funds-for-christian-givers).

[Read nextCharitable giving strategy: how to give more on purpose and pay less tax doing it](https://seekfirst.multisites.ai/charitable-giving-strategy)

## Related terms

-   [private foundation](https://seekfirst.multisites.ai/glossary/private-foundation)
-   [bunching charitable deductions](https://seekfirst.multisites.ai/glossary/bunching-charitable-deductions)
-   [donating appreciated stock](https://seekfirst.multisites.ai/glossary/donating-appreciated-stock)

## Sources

1.  [IRS: Publication 526, Charitable Contributions](https://www.irs.gov/publications/p526)
2.  [IRS: Publication 526, Charitable Contributions](https://www.irs.gov/publications/p526)

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