How a Donor Advised Fund Works

How a Donor Advised Fund Works

by | Feb 20, 2025 | Donor Advised Fund

At Ten Talents Foundation, we believe generosity should be simple, strategic, and impactful. Yet, many people struggle to balance tax-efficient giving with supporting multiple organizations they love.

Donor Advised Funds (DAFs) have grown rapidly in popularity, with over $230 billion in assets held in DAFs across the U.S. as of 2022 (National Philanthropic Trust). Why? Because they streamline giving, provide tax advantages, and allow charitable donations to grow over time.

Most people assume generosity means writing a check, but a Donor Advised Fund is a smarter way to give—offering flexibility, simplicity, and the ability to make a greater impact.

What is a Donor Advised Fund?

A Donor Advised Fund (DAF) is a charitable account designed to help donors give more strategically. Instead of donating to individual organizations separately, donors contribute to their DAF, receive an immediate tax deduction, and then recommend grants to nonprofits over time.

Think of it as a charitable investment account—one that grows tax-free and allows for long-term, intentional generosity.

How a Donor Advised Fund Works

  1. Establish a Donor Advised Fund with a foundation like Ten Talents Foundation.
  2. Contribute cash, stocks, or non-cash assets to your Fund whenever you choose.
  3. Your funds grow tax-free, increasing your potential impact.
  4. Recommend donations to your favorite nonprofits when you’re ready to give. 

Why Use a Donor Advised Fund?

  • Maximize tax benefits – Get an immediate charitable deduction and avoid capital gains taxes when donating non-cash assets.
  • Simplify your giving – Manage all donations through one account and receive a single tax receipt.
  • Increase your impact – Let your funds grow tax-free, allowing you to give more over time.
  • Plan giving intentionally – Donate when it makes sense for you and the causes you support.  You can give to your DAF now, claim tax benefits, and distribute to charities later. There’s no requirement to distribute funds immediately, allowing donors to plan their giving over time.
  • Involve family – You can include your family in charitable decision-making and even pass on giving instructions through estate planning.
  • Invest and grow – The funds in the DAF can be invested, potentially increasing the impact of charitable giving over time.

Want to Learn More?

Donor Advised Funds are powerful tools for intentional, tax-efficient generosity. Whether you’re an individual, family, or business, a Donor Advised Fund can help you simplify your giving and maximize your impact.

Contact us here to begin the process of starting a donor advised fund for you, your family or your business!

Giving Non-Cash Assets through a Donor Advised Fund

Giving Non-Cash Assets through a Donor Advised Fund

by | May 9, 2023 | Donor Advised Fund

Giving Non-Cash Assets Through a  Donor Advised Fund.

Open a Donor Advised Fund and simplify the way you make donations.

When you open a Donor Advised Fund through the Ten Talents Foundation, we become the hub to help you give cash and non-cash gifts. You can save a significant amount in capital gains taxes when you gift assets like:

  • Appreciated Securities
  • Appreciated Real Estate
  • Business Interests
  • Crop/Agricultural Gifts
  • Cryptocurrency
  • & More!

Example: Gifting Real Estate through a Donor Advised Fund

One example of a way you can do this is through gifting a piece of appreciated real estate to your Donor Advised Fund at Ten Talents.

This means you may not pay capital gains taxes as you normally would when selling a piece of property.

The full value of the real estate is instead transferred into your Donor Advised Fund and you also receive a tax receipt letter. You can then make donations out of your Donor Advised Fund for the next several years, allowing a greater portion of your dollars to go to organizations you love!

Most of peoples’ business and personal wealth is locked up in non-cash assets like property, securities, business interests, or crops. Because of this, when a nonprofit makes a request for a gift, funding must usually come from your cash reserves, not the bulk of your giving capacity.

The Ten Talents Foundation helps generous individuals, businesses, and families save money in taxes and move from thinking about giving on a yearly basis to looking at their giving from a long-term perspective.

A Donor Advised Fund provides a simple way for you to give cash and make gifts of non-cash assets in a way that saves a considerable amount in taxes. That money can instead become a Donor Advised Fund for you to make donations out of, invest in your community, and support causes you’re passionate about for years to come!

    Open a Donor Advised Fund

    If you have specific questions about how to open a Donor Advised Fund or give non-cash assets, call (559) 387-5534 or email info@tentalentsfoundation.org.