What is a Donor Advised Fund?

By Rob West

May 27, 2026

Many generous believers want their giving to be both intentional and well organized.

Faithful Steward Issue 6
What is a Donor Advised Fund?

Many generous believers want their giving to be both intentional and well organized. A donor advised fund (DAF) offers a practical way to manage charitable gifts while supporting the ministries and causes you care about over time.

When you contribute to a DAF, you receive an immediate charitable tax deduction. You can then recommend grants from the fund to qualified charities whenever you choose. Contributions may include cash, appreciated securities, real estate, or other non-traditional assets. Rather than deciding where every dollar must go right away, a DAF allows you to make a gift today and distribute it thoughtfully over time.

DAFs offer several key benefits:

Simplicity. When you make a contribution, you receive a single tax receipt from the sponsoring organization, rather than collecting receipts from each individual charity you support. Flexibility. A DAF allows you to contribute during seasons when income is higher—such as after a bonus, business sale, or other financial windfall—while continuing to support your church and favorite ministries consistently over time. When appreciated assets are contributed, donors may also avoid capital gains taxes while still receiving a charitable deduction. Family Giving. Many families involve children or grandchildren as successor advisors who help recommend grants to charities. This creates opportunities to practice generosity together and pass on values of stewardship to the next generation.

A donor-advised fund doesn’t replace tithing or personal generosity. Instead, it can complement the way you already give—helping you steward God’s resources with greater intention and foresight. Consider speaking with your Certified Kingdom Advisor® to learn whether a DAF could support your long-term giving strategy.

This article was published in our Faithful Steward magazine, a quarterly publication filled with encouraging stories, biblical teaching, and practical tools to help you grow as a wise and joyful giver. If you'd like to begin receiving Faithful Steward, consider becoming a FaithFi partner.
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