A donor-advised fund (DAF) is a type of giving that allows you to combine the most favorable tax benefits with the flexibility to easily support the FarmHouse Foundation. In addition to accepting DAF gifts, the Foundation also offers a way to initiate a grant recommendation directly from our website through our DAF Direct widget. If you already have a DAF, use the widget below to initiate a grant recommendation at any time.
How it works
First, you have to make an irrevocable contribution to a sponsoring charitable organization to establish a donor-advised fund (e.g. Fidelity Charitable, Schwab Charitable, etc.).
You then become a donor-advisor and the sponsoring organization allocates the charitable contribution to your DAF.
You have the opportunity to name the DAF and retain advisory privileges over the investment allocation for the DAF. The investment options available vary by sponsoring organization and since the assets in the DAF belong to the sponsoring organization, any investment growth is tax-free.
You have advisory privileges over the disbursements made from the DAF. You recommend disbursements, but they must meet the grant-making criteria of the sponsoring organization. Typically, disbursements may only be recommended to IRS-qualified public charities exclusively for charitable purposes, such as the FarmHouse Foundation.
Additionally, your tax-deduction is recognized when you make the initial gift to establish the DAF only. According to the IRS, grants made from DAFs are not considered tax-deductible because you have already received a tax deduction when you created the fund.
When you want to make a grant from your DAF, you simply submit a request for disbursement. You will do this through your sponsoring organization’s website/system. We also offer at DAF direct widget below to initiate a grant recommendation directly from our website.
Once the sponsoring organization approves the recommended disbursements, we receive notification that the grant has been made. It will generally come to us in the form of a check.
You will recieve a thank you letter and recognition of your gift from the FarmHouse Foundation.
For more information about Donor Advised Funds, please contact Allison Rickels, Executive Director, at (816) 891-9445 or Allison@FarmHouse.org.