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Donor Advised Funds-101

Updated: Feb 25, 2021

by Brian Elmore

Donor-advised funds continue to become more popular, so here is a brief primer on how they work, why donors use them, and how they could benefit your organization.

What is a donor-advised fund?

Donor-advised funds (DAF) are defined by the IRS as “separately identified fund or account that is maintained and operated by a section 501(c)(3) organization, which is called a sponsoring organization.

What does this actually look like?

$5,000,000 comes into your checking account overnight via completely legal means. Congratulations! But you don’t eat avo