Donor Advised Fund (DAF) Decisions – Should I Use A Donor Advised Fund (DAF) When Giving To Public Charities?
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2026 · SHOULD I USE A DONOR ADVISED FUND (DAF)
WHEN GIVING TO PUBLIC CHARITIES?
Do you make substantial
charitable gifts on an
annual basis?
Will you make a large
charitable gift this year in
order to offset your income
tax liability?
Do you typically claim the
standard deduction?
Do you have highly
appreciated securities?
Consider bunching your
charitable contributions
into certain tax years to
allow for itemized
deductions.
You can take a charitable
deduction in the year of
any gifts to your DAF.
Although you make
completed gifts for income
tax purposes, you retain
control over the timing of
and amount of the ultimate
distribution to the
charity(ies).
During your lifetime, you
can recommend grants
from your DAF to eligible
charities (most 501(c)(3)
public charities), to be
made in the name of your
DAF or anonymously.
Consider gifting these
assets, in kind, to your
DAF. This allows you to
transfer the full FMV
without realizing any
taxable gains.
At your death, you may
name charitable
beneficiaries, impose a
grant schedule, and/or
name a successor to
assume grant-making
responsibilities.
You can advise on the use
of your contributed funds,
but the DAF’s sponsoring
organization must have
exclusive legal control over
the assets contributed.
Do you want to retain
control over the timing of
the ultimate distribution to
the charity(ies)?
Do you want to
make a gift that benefits
both charitable and
noncharitable
beneficiaries (e.g.,
yourself or your family)?
Consider using a
split-interest gift strategy,
using a qualified charitable
lead or remainder trust to
accomplish your tax and
legacy planning goals.
Consider using a DAF to
manage your charitable
gifts, both during your
lifetime and as part of
your estate plan.
Consider making gifts
directly to the charity(ies),
funded strategically (e.g.,
with appreciated assets,
QCD, etc.).
Yes
No
Yes
No
No
Yes
No
Yes
No
Yes
Yes
No
Do you intend to make
numerous and/or
substantial charitable gifts
at your death?
A DAF is not likely to be a
beneficial strategy.
Yes
No
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aaron@defiantservicesllc.com
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