How a Donor Advised Fund Works
1. Fund your Account
To establish a DAF, you make an irrevocable contribution—this could be cash, stock, real estate, or other assets.
2. Receive an Immediate Tax Deduction
Because DAF sponsors are public charities, your contribution may qualify as a charitable gift for federal and/or state income tax purposes. The size of your deduction depends on the type of asset and how long you’ve held it. This structure allows you to plan your giving when it makes sense for you, while recommending grants to organizations like the Manhattan Beach Education Foundation at any time in the future.
3. Personalize your DAF
You can set up your DAF to reflect your personal goals and values. Give it a name that’s meaningful to you, involve family or friends as co-advisors, and even create a legacy plan to ensure your fund continues to support the causes you care about beyond your lifetime.
4. Invest for Growth
The assets in your DAF can be invested according to your recommendations, and any growth is tax-free. This gives your fund the potential to generate even more resources for the schools and programs you want to support.
5. Support Favorite Charities
Once your DAF is established and funded, you can recommend grants to charitable organizations anytime. Grants can be one-time or recurring, made in your name or anonymously, and even noted with a special purpose such as “in honor of” or “in memory of.”
5. Create a Legacy Gift
When you set up or update your DAF, you can also decide how the remaining balance will be distributed after your lifetime. You can appoint successor advisors to carry on your giving or designate specific charities, like MBEF, to receive the final distribution.
If you are interested in opening a Donor Advised Fund, talk with your financial institution or investment firm about how a DAF might benefit you.
The Manhattan Beach Education Foundation is a California non-profit, public benefit, corporation. It is a tax-exempt organization under Section 501(c) (3) of the Internal Revenue Code. The federal tax ID number for the foundation (EIN) is 95-3881166. All donations are tax-deductible to the extent allowed by law.
