Donor Advised Fund

Our own, Kent Seton and Kirk Scott did a webinar discussion on March 21st in collaboration with Investment News which is a preeminent news publication in the wealth management industry. 

The topics of the discussion are ideal for professional and wealth advisors to navigate charitable structures, like donor advised funds, private foundations, etc like a pro to be able to elevate their conversations with their high-net-worth clientele surrounding philanthropy.

Check out the link below for a live recording of the webinar:

DAF Limitations

Donor Advised Funds do not accommodate:

  • Donors can’t raise funds

  • Donors can’t make charitable contributions to foreign organizations

  • Donors can’t give a charitable gift to an individual, such as a scholarship

  • Donors can’t use funds to put on an event

  • A DAF cannot pay its lawyers

  • Self-dealing rules are onerous

  • Some platforms are very limited on types of non-cash assets to receive

  • Some platforms are very limited on types of investments

  • DAF cannot disburse funds to an entity controlled by the donor

The Fund Administrator (sponsor) retains financial rights to direct the charitable disbursements and investment of the charitable funds (subject to Prudent Investment Rule)

Recommendations are made by either the donor for investment decisions, or by the Investment Manager who directs the investment of the funds.

DAFs can only disburse funds via US approved 501(c)(3) charities or Investment Managers.

ECF is not an investment advisor or wealth manager and makes no recommendations concerning investment strategy.

Tax Benefit Considerations

DAF donation limitations on AGI

  • 60% on cash

  • 30% on other assets

How Can We Help

Which Charitable Fund Quiz

Just answer a few questions to determine the best fund for your charitable work.