Donor Advised Funds
What is a Donor Advised Fund?
A Donor Advised Fund (DAF) is a giving account used solely to manage donations to charities.
Individuals, families or organisations can add funds, assets or securities to their DAF account as often as they’d like – then recommend when and where to distribute them, enabling impactful and tax-efficient philanthropy.
Mary's Meals are able to accept donations from DAFs and we would be happy to talk to you about how we steward your gift.
How does a Donor Advised Fund work?
Contribution:
Donors contribute assets, such as cash, securities, or other property to a DAF, which is administered by a DAF provider.
Tax benefits:
Donors receive tax relief for their contribution (potentially reducing income tax and allowing the fund to grow tax-free).
Recommendations:
Donors can recommend donations to specific non-profit organisations from their fund. They can suggest how much should be granted to each organisation, and when. The DAF provider must ensure that the recommended organisations are eligible for tax-deductible donations under HMRC regulations and carry out due diligence on charities before making a donation.
Investment Growth:
The funds within the DAF can be invested, and any investment growth is typically tax-free. This allows the assets to grow over time, potentially increasing the amount available for charitable giving.
Benefits to you
Donating via a DAF offers you effective philanthropy and impactful giving.
Give flexibly:
Give cash or assets, give now or give later, give one big chunk or give smaller gifts over time. It’s up to you!
Tax effective giving:
You can reclaim Gift Aid on eligible cash gifts. Donors may claim income or capital gains tax relief on all gifts. Legacy gifts to DAFs are exempt from inheritance tax.
Less admin:
Governance, admin and due diligence, and reporting are all taken care of by the DAF provider.
Give anonymously:
For donors who value their privacy, it is easy to make anonymous donations via a DAF.
Leave a legacy:
Donors can incorporate their DAF into their estate planning.
Next steps
To find out more about giving to Mary's Meals through a Donor Advised Fund, please get in touch with Katie Harding, Major Giving and Partnerships Manager.
