Donor Advised Funds
A donor advised fund (DAF) is a flexible and effective way for clients to support the causes they care about. Individuals, families and businesses can establish a DAF at Colorado Gives Foundation, which expertly manages the fund and simplifies the giving process. With a DAF, donors can enjoy immediate tax benefits upon contributing to the fund, while having the freedom to support nonprofits at their convenience.
A DAF at Colorado Gives Foundation is a great option for those seeking convenience, personalized support and a desire to make a difference in their communities.
How does a DAF work?
At Colorado Gives Foundation, starting a donor advised fund is easy and accessible, requiring only an initial contribution of $5,000 in cash, securities, or other assets. Once established, your fund is carefully managed, invested, and grows tax-free, allowing you to maximize the impact of your giving.
In addition to the immediate tax benefits your client receives with each contribution, they also have the flexibility to support the causes and nonprofits that matter most to them by making grant recommendations from their DAF. Our knowledgeable team at Colorado Gives Foundation is here to support you every step of the way, providing guidance on community needs and helping your client make informed grant decisions. Clients can even invite family members or others to participate in the joy of giving.
Colorado Gives Foundation takes care of all the details, including verifying nonprofits’ 501(c)(3) status, approving grants, and distributing funds. With a Colorado Gives Foundation DAF, your client can focus on making a difference in their community, knowing that we’re here to help every step of the way.
Frequently Asked Questions
The money in a donor advised fund is invested in the Colorado Gives Foundation short-term portfolio, which has a target return of CPI +2%. The short-term portfolio is designed to emphasize capital preservation for regular grant making as well as maximizing investment returns. For more details see our Short-Term Investment Policy.
If a client opens a DAF or makes contributions to their existing DAF, those donations are eligible for a tax deduction in that calendar year, to the extent allowable under federal and state laws. Colorado Gives Foundation will issue a tax receipt upon receiving the funds.
Donors can also access quarterly statements in their donor portal, which include contributions, grant distributions, administrative fees and investment performance.
Clients are restricted to making grants to 501(c)(3) nonprofits with a public charity status of 509(a)(1) or 509(a)(2) and must comply with all Colorado Gives Foundation’s grant policies.
You can make your initial contribution in the form of cash, securities or complex assets, and you are welcome to make additional gifts at any time. In many situations, giving a non-cash asset is more tax- advantageous than giving via cash or credit cards.
Jeremy Stern
Major Gifts Officer
“I’m looking forward to making it easier for you to help your clients meet their philanthropic goals.“
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