Donor-advised fund

Understand the route

How this gift works

A donor-advised fund (DAF) is administered by a charitable sponsor. Once contributed, assets are under the sponsor’s legal control; you retain advisory privileges. Sending a grant to another charity is a recommendation made through that sponsor, not a withdrawal to your own bank account. The sponsor reviews eligibility and sends an approved grant.

Background: IRS: how DAF ownership works Fidelity Charitable: grant review and restrictions

Who does what

• You recommend a recipient, amount and purpose.
• The sponsor checks the recommendation and issues an approved grant.
• The receiving organization confirms arrival and recognizes your wishes where permitted.

These guides describe giving in the U.S. The receiving organization’s policies and your provider’s current instructions set the actual process.

Who this may fit

Supporters who already give through a DAF sponsor.

Before you begin

Gather these details before starting the process. You do not need to have every answer before talking with the organization.

The route at a glance

1. Confirm the organization's legal name and identifiers with the organization.
2. Recommend the grant through your sponsor's own portal.
3. Tell the organization to expect it if you want it applied to a purpose.

From intention to confirmation

The process, step by step

1. Confirm the recipient

   Ask the organization for its exact legal identity. Search your sponsor’s recipient database and resolve a similar-name match before proceeding.

2. Choose grant details

   Enter the amount, permitted purpose and recognition preferences. Check whether an anonymous grant will omit contact details that the organization needs for a thank-you.

3. Check restrictions

   Tell the sponsor about tickets, meals, memberships, pledges or other benefits connected with the grant. Let the sponsor determine what its rules allow.

4. Submit the recommendation

   Use the sponsor’s official portal. Keep the reference number and distinguish a submitted recommendation from an approved or paid grant.

5. Follow the grant through

   Track sponsor status and ask the recipient to confirm arrival. If a designation matters, tell the organization to expect the sponsor’s grant through its normal contact process.

These steps keep your place in the guide. Confirm progress with the organization and provider.

Confirm it. Keep the records.

Confirm that the sponsor paid the approved grant and the receiving organization received it. Keep the grant records separate from the original contribution to your DAF.

• The sponsor’s recommendation and payment records.
• Any purpose or anonymity instructions.
• The recipient’s confirmation or thank-you.

Important distinctions

• Do not treat a recipient’s thank-you for a DAF grant as a second deductible contribution. Discuss the original contribution and later grant separately with your preparer.
• A grant is subject to the sponsor’s review. A recommendation date does not guarantee a delivery date.

Check the applicable rules: IRS: how DAF ownership works Fidelity Charitable: grant review and restrictions

A few more useful answers