Funding a Donor Advised Fund (DAF)

The first step to funding a DAF is to make an initial contribution of personal assets.

These assets can come in many different forms, including:

• appreciated securities (bonds, mutual funds, ETFs, stocks)
• business interests (LPs, LLCs, S-Corps, business ownerships)
• personal property (copyrights, royalties, patents, precious metals)
• real estate
• restricted securities
• life insurance (whole, universal, variable)

Although cash can be used to fund a DAF, non-cash gifts of appreciated, long-term assets may provide a two-part benefit:

• Tax Avoidance on the sale of an asset.
• Tax Deduction to offset other income, which can allow for great planning opportunities.