DAFs let you gift cash, appreciated securities, and other appreciated assets to the charitable organization. The fund then gifts the value of your gifts, over a time period, to the charitable organizations you designate.
DAFs can be useful if you want to make a contribution, and need a current-year tax deduction, but you’d like time to decide where the money will go. You can make a gift now, and the DAF holds the assets until you’re ready to distribute to a charity.
However, it’s important to remember, most sponsoring organizations of DAFs have a time limit as to how long you can go without making a charitable distribution, and a DAF requires giving to be to a 501(c)(3) public charity such as American Red Cross, houses of worship, and educational institutions.