Donor-advised funds – frequently asked questions
Donor-advised funds (DAFs) are one of the fastest-growing ways to give in the U.S., offering a simple and tax-wise way to support your favorite causes.
What are donor-advised funds?
Think of a donor-advised fund as your personal charitable savings account. You can contribute as frequently as you like, receive an immediate tax deduction for each contribution, and then recommend grants to your favorite nonprofits – such as the MPT Foundation.
How do DAFs work?
To establish a DAF, you’ll make a donation of cash, stocks, or other assets to a sponsoring entity such as a community foundation, a faith-based organization, or a specialized DAF provider. From there, you decide which nonprofits receive support. The assets in your DAF may even grow over time, potentially increasing your giving power.
What are DAF advantages?
DAFs are simpler and more affordable to manage than is a family foundation. Your DAF administrator handles the check distribution and administrative tasks. You can contribute to your DAF when it’s most convenient and recommend grants to your preferred nonprofits whenever you're ready.
You have the option to name your DAF account in a way that reflects its mission, such as "The Smith Family Education Fund," or keep your donations anonymous with a name like "The Maryland Improvement Fund."
What else should I keep in mind?
Once you fund a DAF, the assets belong to the sponsoring entity, and gifts are irrevocable. You maintain advisory privileges, meaning you can recommend where grants should go and suggest an investment strategy for your DAF assets.
Please note, grants from a DAF cannot be directed to political parties or candidates.
I made a DAF gift to the MPT Foundation. Can I receive a thank-you gift?
While we deeply appreciate your support, when you make a gift through your donor-advised fund, IRS rules prohibit your receiving goods or services in exchange for your gift; therefore, you are not eligible to receive a thank-you gift when giving via a donor-advised fund.
I made a DAF gift to the MPT Foundation. Am I eligible for MPT Passport and the MPT Program Guide?
Yes! IRS rules do allow benefits such as MPT Passport and the monthly MPT Program Guide for DAF donors.
