“Other [donors] may be concerned that the charity doesn’t know who the funds are coming from,” she added. “These folks want recognition.”
Many brokerage firms now offer DAFs, as do community foundations, according to Foss, who added that providers differ in levels of service. Some providers will vet charities to make sure they qualify for charitable deductions and also ease transfer of last-minute gifts.
Key questions: Can a donor’s financial advisor manage the assets in the DAF account and what are the minimums required for such management? How often does the DAF sponsor send out grants? What fees are involved, and how long does it take to establish an account or send out grants? And what assets can the sponsor accept?
“Some funds have expertise in handling unusual assets such as partnership interests or unregistered stock,” Foss added.