Donor Advised Funds (DAF) FAQs

Donor Advised Funds (DAFs) are a flexible and convenient way to manage your charitable giving while maximizing your impact. By establishing a DAF with the Roscommon County Community Foundation, you can contribute to your fund, receive an immediate tax deduction, and recommend grants to your favorite causes over time. This page answers common questions about how DAFs work, what you can and cannot do with them, and how they can fit into your philanthropic strategy.

A Donor Advised Fund (DAF) is a charitable giving account established at a public charity, like the Roscommon County Community Foundation, which allows you to make a charitable contribution, receive an immediate tax deduction, and then recommend grants from the fund over time.

After establishing a DAF, you contribute cash, securities, or other assets to the fund. You can then recommend grants to qualified nonprofit organizations at any time, allowing you to support your favorite causes when it’s most convenient for you.

Yes, you can make additional contributions to your DAF at any time. Each contribution is eligible for an immediate tax deduction, subject to IRS limits.

You can contribute a variety of assets, including cash, publicly traded securities, closely held stock, real estate, and more. Consult with us to discuss the best options for your situation.

Yes, you can typically recommend how the assets in your DAF are invested from a selection of investment pools provided by the Community Foundation. The returns on these investments can increase the amount available for grants.

Personal Benefit: You cannot use a DAF to pay for anything that provides a personal benefit, such as purchasing event tickets or sponsorships. DAFs cannot be used to pay for tickets to fundraising events, galas or auctions.

Political Contributions: You cannot use a DAF to make political contributions or fund lobbying efforts.

Pledges: You cannot fulfill a legally binding pledge using your DAF, although you can recommend grants that generally support a nonprofit organization.

Grants to Individuals: DAFs cannot be used to make grants directly to individuals. All grants must be made to qualified public charities.

Yes, you can name successors to continue your charitable legacy. After your lifetime, the fund can continue under the guidance of those you’ve designated, ensuring ongoing support for causes that matter to you.

Yes, there are administrative fees associated with DAFs, which help cover the cost of managing and administering the fund. These fees are typically a small percentage of the fund’s balance.

Grants are usually processed within a few days of your recommendation, although the exact timing may vary based on the Community Foundation’s procedures and the nonprofit’s status.

Yes, you have the option to recommend grants anonymously if you prefer your name not to be disclosed to the recipient organization.

To enrich and improve the quality of life in our community.

Encourage positive change for generations to come.

For Good. For Ever. For Everyone.

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To enrich and improve the quality of life in our community.

Encourage positive change for generations to come.

For Good. For Ever. For Everyone.