What are Donor Advised Funds?
A donor advised fund (DAF) is a charitable investment account that allows you to support charities of your choice. When you contribute cash, securities, or other assets to a donor advised fund, the funds are invested for tax-free growth, and you recommend grants to any eligible IRS-qualified public charity.
You can establish a Dartmouth Donor Advised Fund (DDAF) with a $250,000 gift, including one from an existing DAF.
Benefits of a Dartmouth Donor Advised Fund
A DDAF combines the flexibility of a private foundation with the tax advantages of a public charity. DDAFs are invested alongside Dartmouth's endowment and receive the same historically significant investment returns—with no administrative fees.
Did you know? Opening a DDAF also qualifies you for Bartlett Tower Society membership.
How it Works
Once you make your initial gift to establish your fund, you are immediately eligible for an income tax deduction based on the fair market value of your gift. You can roll a DAF from another institution to meet this threshold. Dartmouth will invest the funds alongside the endowment for long-term growth while you consider how you would like Dartmouth to use your gift.
You can make grant recommendations for charitable distributions through the Gift Planning Office, with a required minimum of 5% distributed each year. At least 50% of all contributions must be to Dartmouth or its professional schools.
Cash, real estate, securities and other personal property can be used to establish your fund.
A DDAF can be considered a easy-to-use, low-cost alternative to starting a family foundation. Many families use a DDAF as a way to manage their philanthropy and to continue it into the next generation A DDAF may also be established through a bequest, naming your children or others to be fund advisors.
What They're Saying about DDAFs
Setting up the DDAF was easy as can be. There are many options in how you choose to support Dartmouth, from sports to the graduate schools and the Dartmouth College Fund. Donors have total flexibility.
We appreciated the ability to allocate 50 percent to non-Dartmouth charities and the fact that the funds would be managed fee-free by the Dartmouth Investment Office.
I’m an extremely analytical person. I’m brain first and heartstrings later. A DDAF is a tax-efficient way to give, and your investment is managed in conjunction with Dartmouth’s endowment.