Make a difference with a donor-advised fund!
Donor-advised funds (DAFs) are the fastest growing charitable giving vehicle in the United States, up nearly 5% over the last decade.
No longer a philanthropic tool reserved only for high-wealth retirees, DAFs have seen increased adoption by donors across varying incomes and ages. In fact, according to the Bloomberg 2026 Giving Signals Report, 42% of millennials who made a charitable contribution in the last year donated through a DAF.
Despite the growing popularity of DAFs, however, the majority of the general public is still unaware of their benefits — or even of what a DAF is at all. To learn more, we sat down with Jill McIlroy, Senior Philanthropic Advisor for U.S. Bank Private Wealth Management, to break down the basics about donor-advised funds.
Senior Philanthropic Advisor Jill McIlroy helps nonprofit organizations, families, individuals, and businesses work towards their philanthropic objectives and maximize the impact of their charitable goals. Prior to joining U.S. Bank Private Wealth Management, Jill spent more than 20 years working in the nonprofit sector and most recently worked as a Philanthropic Advisor at the Arizona Community Foundation, a DAF sponsoring organization.
What is a Donor-Advised Fund (DAF)?
A donor-advised fund (DAF) is a charitable giving account that allows you to make a tax-deductible contribution, invest the assets for potential growth, and recommend grants to qualified nonprofits over time. It’s a simple and flexible way to support the causes you care about while organizing your philanthropy in one place.
What are the benefits of donating through a DAF?
DAFs provide immediate tax benefits, flexibility in timing your charitable giving, and administrative simplicity. You can contribute when it’s tax-efficient, then distribute gifts over time. They also allow you to centralize giving, involve family members, support long-term priorities, and make grants anonymously if you prefer to keep your philanthropy private. Some donors use their DAF to “bunch” several years of giving into one larger contribution to maximize tax benefits, then grant those funds out over time.
Are there restrictions regarding the types of donations I can make through my DAF?
DAFs can support most IRS-qualified public charities. However, grants cannot provide personal benefits, such as paying for event tickets, memberships, or auction items, and may not be used to satisfy certain pledges or private obligations.
What types of funding can I contribute towards my DAF?
DAFs typically accept a wide range of assets, including cash and publicly traded securities. Many also accept more complex assets, such as privately held business interests or real estate, depending on the sponsoring organization. Contributing appreciated assets may offer additional tax advantages, such as avoiding capital gains taxes.
How much does it cost to open a DAF?
Costs vary by sponsoring organization but generally include an initial minimum contribution (typically between $0 and $25,000) and an ongoing administrative fee based on the account balance. Some providers may also charge investment management fees, depending on how assets are invested within the fund.
Can I set up a DAF for my whole family or are these accounts only for individuals?
A: DAFs can be structured for individuals or families. You can name multiple advisors and successor advisors, making it easy to involve family members in charitable decisions and create a shared, multigenerational giving strategy.
Who should I speak with if I’d like to open a DAF?
You can start with your financial advisor, who can help determine whether a DAF aligns with your overall financial and philanthropic goals. You can also contact a DAF sponsoring organization directly to learn more about account options, the setup process, and fees.