What is a Donor Advised Fund?

A donor advised fund is a uniquely flexible vehicle enabling donors to allocate funds to philanthropic projects. Donors enjoy administrative convenience, cost savings, and tax advantages by conducting their grant making through the fund. Donor advised funds are the fastest growing charitable giving vehicles in the United States because of the tax benefits as well as how simple, easy, efficient and effective they are when planning philanthropic contributions.

Why should I join Alliance for Good

AFG provides an opportunity to become a part of a community of inspiring, purpose driven philanthropists who are creating greater impact by sharing opportunities and combining efforts.

What type of assets can I contribute?

Donors may make irrevocable and non-refundable charitable gifts of cash, marketable securities, restricted stock, ownership interests in private companies (eg, c-corp, B-corp, and s-corp), limited liability company and limited liability partnership interests, private equity, hedge fund interests, pre-IPO shares, mutual fund shares, real estate, cryptocurrencies (ie.Bitcoin), life insurance, retirement assets, commercial annuities, oil and gas interests, artwork and other collectibles, etc. If you have questions about a specific type of asset you would like to contribute, please contact us to determine if it qualifies as a DAF contribution. Note, in each case final authority to accept a proposed gift resides with the board of directors.

What are the differences between a Donor Advised Fund and a Family Foundation?

Both donor advised funds and private foundations offer a variety of attractive features, including the ability to set aside significant assets now and distribute them later. However, the choice between the two vehicles often comes down to three things; simplicity, flexibility and tax benefits. Briefly, donor advised funds are far simpler than private foundations to create and to administer. Also a contribution to a donor advised fund can generate a bigger deduction for a donor than a contribution of the same property to a private foundation.

What are the tax benefits?

What are the Tax Benefits?AFG  Donor Advised Fund (AFG DAF) is eligible for a charitable contribution deduction from your federal income tax, subject to any limitations based upon your own personal situation. A charitable deduction is also available in many states that assess an income taxes. Hypothetical example: Imagine that you purchased stock in a company many years ago for $10,000, and the value of the stock has increased over time to $50,000. If you donated the stock to AFG DAF, you would be eligible for a charitable deduction for the stock’s full fair market value of $50,000. AFG DAF’s later sale of the stock would not trigger any tax to you on the $40,000 of capital gain. Our team can help you and your advisors determine whether a gift to AFG DAF is right for you.

What are some additional benefits of the AFG DAF?

Be a part of a community of entrepreneurs and philanthropists committed to creating positive impact in the world. Increased inspiring opportunities for giving. Personalized administrative support, and simplified records of all of your charitable contributions for tax filing.

How much can I deduct in a given year?

We can help you and your advisors determine how to maximize the amount you can deduct as a charitable gift. The annual limitations on this amount are generally based on a percentage of the donor’s adjusted gross income or “AGI” and other charitable gifts.  AGI is a person’s gross income, minus certain deductions that a person may claim whether or not the person itemizes. Charitable deductions that cannot be used in the current year may carried forward for up to five succeeding tax years. This is one reason why planning and consulting with a tax advisor is so important.

Who can open a Donor Advised Fund Account?

Individuals, families, corporations, partnerships, trusts, family foundations or other legal entities may fund an account.

What happens to the money while it is in the fund?

The contribution can be invested while it is in the fund, which gives the contribution the potential to grow, tax free, while deciding where to grant the donation.

Where can I allocate or grant my donation to once I have a Donor Advised Fund?

Grants can be given to just about any qualified charity as well as a variety of other organizations. This includes permitted domestic and foreign charitable organizations recognized by the IRS. In very specific circumstances grants can be made to LLC’s and film projects.

Is there a minimum contribution to open a Donor Advised Fund?


The minimum size for a new individual account is $25,000. A commitment, pledge or contribution of $1M will give you the opportunity to become a co-founder of the AFG DAF.

Is there a maximum contribution to open a Donor Advised Fund?


There is no maximum contribution, but the amount a person can deduct will be limited under federal and state law..

Why should I go with the Alliance for Good fund instead of another Donor Advised Fund?


The AFG DAF is a network of empowered philanthropists dedicated to reallocating their resources to make a positive impact on the world. Each donor creates their own account while belonging to a larger community. Whereas other DAF’s are individual accounts without the benefits of a larger network.

How do I make a donation from my Donor Advised Fund?

Please contact your DAF account manager to support your grant allocations.

When is the best time to open a Donor Advised Fund?

Any time before the end of the fiscal year you are looking at obtaining a tax deduction.  Note, certain contributions may take some time to facilitate so be sure to act soon to ensure a gift is completed in advance of year-end.

What does it cost to open a Donor Advised Fund

Our team will help you determine the exact amount specific to your account.

Can I move assets from an existing Donor Advised Fund or a Private Foundation to the AFG DAF?



How long does it take to open a Donor Advised Fund?

Opening a Donor Advised Fund can usually be done within a day. The amount of time necessary to fund a DAF account will depend on the nature of the assets being contributed.

How long does it take to process a grant to a charity?

Usually within 10 business days if there are no issues

What is the minimum grant amount?

Each grant must be at least $250

What is the maximum grant amount?

There is no maximum grant amount, however you must have sufficient funds in your Donor Advised Fund account to successfully complete the grant amount.

Can I make a grant toward a foreign organization?

Yes, if the foreign organization qualifies after a due diligence process. However, many foreign organizations have a US partner for philanthropic contributions. And many US 501(c)(3) organizations have projects and programs operated outside the US.

Who can open a advised fund?

Individuals, families, corporations, partnerships, trusts, family foundations or other legal entities may fund an account.