Giving today looks different than it did a decade ago. More individuals and families are looking for ways to simplify their charitable giving while maximizing the resources available to support the causes they care about.
One giving option that continues to grow in popularity is the donor-advised fund, often called a DAF.
Whether you’re new to donor-advised funds or already have one, understanding how they work can help you make thoughtful giving decisions that support organizations making a difference in communities around the world.
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What Is a Donor-Advised Fund?
A donor-advised fund is a charitable giving account established through a sponsoring organization, such as a community foundation or charitable financial institution.
When you contribute to a donor-advised fund, you generally receive an immediate tax deduction for eligible contributions. Those funds can then be invested and grow over time before you recommend grants to qualified nonprofit organizations, including Midwest Food Bank.
Think of it as setting aside charitable dollars now while deciding later which nonprofits will receive your support.
How Does a Donor-Advised Fund Work?
The process is straightforward.
- Contribute cash, appreciated securities, or other eligible assets to your donor-advised fund.
- The sponsoring organization manages the account and allows the assets to grow tax-free when applicable.
- Recommend grants to IRS-qualified charities whenever you’re ready.
Many donors appreciate having the flexibility to support multiple organizations throughout the year without making separate tax decisions each time they give.
Why Are More Donors Choosing Donor-Advised Funds?
Donor-advised funds continue to grow because they make charitable giving easier while offering flexibility for long-term generosity.
Some of the most common benefits include:
- Immediate tax advantages for eligible contributions.
- The opportunity to donate appreciated assets, such as publicly traded stock.
- Tax-free investment growth within the fund.
- The ability to recommend grants over time rather than making all charitable decisions at once.
- A simple way for families to involve future generations in charitable giving.
- Streamlined recordkeeping since the sponsoring organization manages receipts and administration.
For many donors, donor-advised funds provide an organized approach to supporting the organizations and causes that matter most.
What Can You Give Through a Donor-Advised Fund?
While many people contribute cash, donor-advised funds can often accept a variety of assets, depending on the sponsoring organization.
These may include:
- Cash
- Appreciated securities
- Mutual funds
- Privately held business interests
- Real estate
- Other complex assets accepted by the sponsoring organization
Donating appreciated assets may allow donors to maximize both their charitable impact and potential tax benefits. Donors should consult a qualified financial or tax advisor regarding their individual circumstances.
Supporting Midwest Food Bank Through a Donor-Advised Fund
Every gift to Midwest Food Bank helps extend food, disaster relief, and hope to people in need.
Donor-advised fund grants help support programs that provide nutritious food to nonprofit partners, disaster relief supplies to communities recovering from emergencies, and international food assistance to vulnerable populations around the world.
Because Midwest Food Bank operates with a strong commitment to financial stewardship, donor support helps stretch resources further while advancing the organization’s mission of sharing the love of Christ by alleviating hunger and malnutrition and providing disaster relief.
Whether your grant supports unrestricted operations or a specific initiative, every contribution helps strengthen our ability to serve.
How to Recommend a Grant
If you already have a donor-advised fund, recommending a grant is typically a simple process.
Log in to your donor-advised fund account through your sponsoring organization and search for Midwest Food Bank among eligible charities.
Many donors use organizations such as:
- Fidelity Charitable
- Schwab Charitable
- Vanguard Charitable
- Community foundations
- Other sponsoring organizations
If you have questions about making a grant or would like assistance, our Development Team is happy to help guide you through the process.
Giving That Lasts Beyond Today
Donor-advised funds offer more than convenience. They provide a thoughtful way to plan charitable giving, involve family members in philanthropy, and support trusted nonprofit organizations over time.
As more donors look for flexible ways to make a lasting difference, donor-advised funds continue to become an important part of charitable giving across the country.
Whether you’re exploring donor-advised funds for the first time or looking for new ways to support Midwest Food Bank, your generosity helps provide food, disaster relief, and hope to people in need.
