What is a Donor Advised Fund (DAF) and how does it benefit my client?
A DAF is a charitable giving vehicle sponsored by a public charity (in this case, iGiftFund). When your clients make a contribution to the DAF, they receive immediate and maximum tax benefits. Receiving the tax benefit up-front allows them to recommend grants to their favorite charities over time, on their own schedule. They also recommend who will succeed them as fund advisors over successive generations.
At iGiftFund, we partner with you to make sure your clients have an exceptional experience as they focus on their philanthropic vision, grant making and succession.
How does a DAF work at iGiftFund?
DAF’s at iGiftFund have 2 components:
- Investment account at your preferred custodian that you will manage (approx. 98%)
- Liquidity account at iGiftFund (approx. 2%)
The purpose of the liquidity account is to cover small grants and our quarterly administrative fees. The liquidity account is rebalanced as needed.
Once the DAF is set up and funded, your clients (and you, if given the ability to do this), can recommend grants and grantees in DonorView, our online portal. In the portal, grants can be set up as a one-time or recurring, with full, partial or anonymous recognition.
Once submitted through the portal, grants are issued in the form of a check within 5 to 7 business days (many times much sooner, if the liquidity is available and the grantee is vetted).
iGiftFund issues quarterly statements. We can set up duplicate statements or third-party view-only access for your clients as well.
What is the minimum initial contribution to establish a DAF?
The minimum initial contribution is $25,000
Additional contribution minimum is $1,000
Our fees are tiered, starting at 45 basis points (bps) for the first $500K (Min $600/yr). These tiers go down the larger the fund is.
Click here for the complete tiered scale: Fees and Minimums
Do you have any guidelines regarding the investment?
Do you have a handout I can share with my client?
Can you do a demo of DonorView for my clients?
Please visit our Donor Hub page and share it with your clients. This page has the demo of the portal and it's tailored to the donor. Stay tuned for specific How To demos, which will be available mid January 2024.
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