Donor-Advised Fund (DAF)
A donor-advised fund, or DAF, is a philanthropic vehicle established at a public charity level. It allows donors to make a charitable contribution, receive an immediate tax benefit, and then recommend grants from the fund over time - in other words, how your funds will be used.
Once donors decide to donate a property, they have a choice to make regarding the nonprofit organization that will receive the gift: they can give to a single-cause charity, or to an umbrella charity (i.e., a charity that serves other charities).
FEA's DAF program allows individuals and their family, to set up a dedicated account for giving, and then the can make recommendations for grants to other charitable organizations.
The number of individual charities as well as the level of support, can be adjusted over time. Furthermore, the DAF account allows donors to set up a schedule for giving over the course of many years, or even to pass down the account so that heirs can continue to give.
This could be a very convenient option for donors hesitant to give an entire, large gift to a single cause. When all conditions are met and the proper process is observed— among donors, their advisors and the recipient public charity—the end result of donating real estate or other asset directly to charity is that donors are able to give more than they would have through more conventional methods of giving—a true win-win for donors and charities alike.
If this method of giving was employed more frequently, it could do amazing good as a significant source of new charitable funds to many charities.