A donor-advised fund (DAF) is a simple, flexible, and tax-efficient way to give to your favorite philanthropic efforts. Think of DAFs like investment accounts for the sole purpose of supporting philanthropic organizations.
When you contribute cash, securities, or other assets as a philanthropic gift to a DAF, you are generally eligible to take an immediate tax deduction. Then, your donation can be invested for tax-free growth, making available even more money for you to recommend grants to your favorite causes.