“One person gives freely, yet gains more; another withholds what is right, only to become poor. A generous person will prosper; whoever refreshes others will be refreshed.” — Proverbs 11:24-25 (CSB)

As giving grows — whether that’s giving to your church, supporting a handful of ministries, or making a larger gift tied to a windfall or business sale — the simplicity of writing checks throughout the year often starts to strain. Receipts pile up, appreciated stock feels complicated to give, and the giving itself can start to feel more like an administrative task than an act of worship. A donor-advised fund, or DAF, is one tool many Christian families use to bring structure back to generosity without losing the heart behind it.

What a DAF Actually Is

A donor-advised fund is a giving account you open through a sponsoring charitable organization. You contribute cash, appreciated securities, or other assets to the account, and — if you itemize deductions — you receive an immediate tax deduction in the year of the contribution, even if the money isn’t granted to any specific charity until later. Funds in the account can be invested and grow tax-free while they wait, and you retain the ability to recommend grants to qualified charities on whatever timeline makes sense: immediately, over several years, or even across generations.

The word “advised” is important. You don’t retain legal ownership of funds once they’re contributed — the sponsoring organization does — but you retain advisory privileges to direct where the grants ultimately go.

Why Families Use Them

A few reasons tend to come up most often in conversations with clients:

• Bunching charitable giving for tax efficiency. Rather than giving the same amount every year, some families contribute several years’ worth of giving into a DAF in a single high-income year, clear the standard deduction threshold in that year, and then grant the funds out to charities over the following years at their normal pace. This has become more relevant since 2026, when new rules under the One Big Beautiful Bill Act introduced a 0.5% of AGI floor on itemized charitable deductions — bunching into fewer, larger years can help a gift clear that floor more efficiently than the same total spread thin across many years.
• Giving appreciated stock instead of cash. Contributing long-held, appreciated securities to a DAF typically allows you to deduct the full fair market value while avoiding the capital gains tax you’d otherwise owe if you sold the stock first and gave cash.
• One simplified giving record. Instead of tracking receipts from a dozen different charities, your DAF sponsor provides a single statement of contributions and grants.
• Involving the next generation. Many families use a DAF as a hands-on way to teach children or grandchildren about giving — reviewing grant recommendations together and discussing the “why” behind each gift.

Who It Tends to Fit Well

DAFs are usually the best fit for households who give consistently and meaningfully each year, who hold appreciated investments beyond their regular cash flow, who anticipate a high-income year (from a bonus, business sale, or large IRA distribution) and want to capture the deduction while spreading the giving out, or who want a structured way to involve family in generosity decisions.

What a DAF Is Not

It’s worth being clear about the boundaries. A DAF isn’t a private foundation — you have less direct control, and the sponsoring organization has final say over grants, though in practice recommendations to qualified public charities are almost always honored. Grants must go to IRS-qualified charitable organizations, not to individuals, and a DAF generally can’t be used to satisfy a legally binding pledge you’ve already made. And unlike a Qualified Charitable Distribution from an IRA, a DAF contribution does not count toward — or help satisfy — a required minimum distribution; the two tools solve different problems and, for some retirees, work well as a pair.

A Next Step

If your giving has grown more complex, or if you’re anticipating a year with unusually high income, a DAF may be worth a conversation. Our team can walk through whether the timing and structure make sense for your specific situation. Schedule a Consultation.

This article is intended for general education and does not constitute personalized tax or legal advice. Please consult your CPA or tax advisor regarding the deductibility of any charitable contribution.

“Each person should give as he has decided in his heart — not reluctantly or under compulsion, since God loves a cheerful giver.” — 2 Corinthians 9:7 (CSB)