For high-net-worth individuals and families, philanthropy is rarely a one-time decision. It’s a long-term commitment shaped by values, timing, tax considerations, and a desire for lasting impact. A donor-advised fund (DAF) brings clarity, flexibility, and intention to that journey.
What is a donor-advised fund?
A donor-advised fund is a charitable giving account that allows you to contribute assets, receive an immediate tax deduction, and invest those assets for potential growth. You can then recommend grants to qualified nonprofits on your timeline, aligning your giving with both your goals and the needs of the causes you care about.
How a DAF works
A DAF is designed to make multi-year, tax-efficient philanthropy simpler and more impactful. Here’s how:
Open an account
Opening a Vanguard Charitable DAF account is straightforward and can take as little as 15 minutes online.
Make a contribution
Make a tax-deductible contribution of cash, appreciated securities, or complex assets. Your initial contribution establishes your account, and you can add to it whenever it makes the most sense for you.
Invest and grow
While funds remain in the account, they can be invested according to your preferences and risk tolerance, with the potential to grow tax-free over time. Many Vanguard Charitable donors have been surprised by how much more they are able to give thanks to our wide range of Vanguard-aligned, low-cost, high-quality investment options.
Recommend grants
Recommend grants at any time through our secure, user-friendly portal. Vanguard Charitable handles due diligence and administration, ensuring your grants go to qualified charities in good standing with the IRS.
Simplify your giving
A DAF serves as a centralized hub for your philanthropy, with consolidated recordkeeping and a single tax receipt for all contributions.
Your giving legacy
Your DAF can support your charitable giving beyond your lifetime in many ways. The two main options are to bestow to others (pass your account to heirs as successor advisors) or endow to charity (through recurring grants, final grants, or transferring to a pooled income fund (PIF.) Whichever you choose, your DAF offers flexibility that ensures your philanthropic legacy carries on.
Why philanthropists choose a Vanguard Charitable DAF
When you open a DAF account, your sponsor manages the administration, making your choice of partner critical. With more than 25 years of experience as a national DAF sponsor and industry-low fees, Vanguard Charitable has helped donors grant billions to organizations across the world.
Our focus is simple: keep costs low, stewardship strong, and attention where it belongs—on helping you maximize your charitable impact over time.