Donor Advised Funds

A donor advised fund is a dedicated charitable investment account that can be used to support a nonprofit organization. You can make a contribution to the nonprofit (such as a local community foundation) sponsoring the fund, and then be eligible for an immediate tax deduction.

DMARC is an IRS-qualified nonprofit from which you can then recommend grants to over time. The donor advised fund also has the advantage that is invested and grows tax-free.

If you don’t need to make a required minimum distribution, it may make sense to explore other options, such as a donation of appreciated securities. Donors should always consult a tax advisor to determine the best strategy for their situation.