A donor advised fund (DAF) not only multiplies but also simplifies your giving. Think of a DAF like a savings or investment account for all of your charitable giving. Instead of writing multiple checks to individual charities, you contribute to your DAF account and receive an immediate tax deduction.
Those contributions are invested and grow tax free. You decide which charities to support and how often. When you’re ready to make a gift from your DAF, the Foundation sends the check to your chosen charity.
The Robinsons started a DAF with the Foundation using $10,000 in stocks and $5,000 in cash, and received an immediate tax deduction. The money was invested and earned an additional $250 while the Robinsons decided which ministries they wanted to support. When they were ready, the Robinsons gave grants from their DAF to their church, the IMB and disaster relief. The Foundation sent all the checks and, at the end of the year, sent the Robinsons a summary of their DAF giving.