A donor-advised fund, or DAF, is like a charitable investment account for the sole purpose of supporting charitable organizations you care about, like the Visual Arts Center of New Jersey.
When you contribute cash, securities, or other assets to a donor-advised fund at a public charity—like Fidelity Charitable, U.S. Chairitable Gift Trust, Vanguard Charitable Endowment Program, and others—you are generally eligible to take an immediate tax deduction. Then those funds can be invested for tax-free growth, and you can recommend personally directed grants to the Visual Arts Center of New Jersey.
You want your charitable donations to be as effective as possible when you give, and donor-advised funds are the fastest-growing charitable giving vehicle in the United States because they are one of the easiest and most tax-advantageous ways to give to charity. Let’s take an in-depth look at how a DAF works: