Before the Client Meeting: A Financial Advisor's Guide to Donor-Advised Funds
Your clients are already giving. The question is whether that conversation happens with you or somewhere else. With Ren, it stays inside your practice.
3.59M
DAF accounts in the U.S., a record high
$327.87B
total DAF assets, up 27.9% year-over-year
$64.60B
granted to charities in FY2024, up 17.9% Source: DAF Research. Collaborative, Annual DAF Report 2025: Updated Analysis Memo (April 2026)
Why this Conversation Belongs with You
When charitable giving doesn’t come up in a financial planning conversation, clients handle it the way they handle anything that feels separate from their wealth plan: they figure it out on their own. National DAF sponsors have made that easy to do: the path is frictionless and well-marketed, and it doesn’t include you.
The advisors who keep charitable planning inside the relationship are the ones who raise it first. A donor-advised fund, powered by Ren, is often where that conversation begins.
How a Ren-powered Donor-advised Fund Works
- Contribute. The donor contributes cash, securities, or other assets to their DAF account. Ren’s partnering sponsoring charities can accept a broad range of asset types, including many that standard giving programs decline.
- Deduct. The donor receives a charitable tax deduction in the year of contribution, even before deciding which charities to support. The giving decision can come later.
- Invest. Assets in the DAF are invested and grow tax-free. The advisor retains investment direction, so the charitable assets stay connected to the financial plan.
- Grant. The donor recommends grants to any IRS-qualified charity, on their own timeline. Administration is handled by the DAF sponsor, supported by Ren’s technology.
Three Client Scenarios to Watch For
Scenario 1: The High-income Year or Tax-planning Moment.
The signal: a client has had a significant income year, a bonus, a windfall, a Roth conversion, or capital gains exposure from portfolio rebalancing. They’re already expecting a tax conversation.
The opportunity: a contribution to a DAF generates an immediate charitable deduction in the year it’s made, even if the donor doesn’t decide which charities to support until later. For clients who give regularly but haven’t structured their giving, this is often the simplest entry point.
Illustrative example: a client facing a projected $43,000 tax bill contributes $50,000 in appreciated securities to a DAF. The contribution generates a $50,000 income tax deduction and eliminates the capital gain on the appreciated shares, a combined tax benefit that meaningfully offsets the year’s liability, with charitable assets now invested and ready to grant on the donor’s timeline.
What to ask: “Are there causes you care about that we should factor into your tax planning this year?”
Scenario 2: The Complex Asset Situation.
The signal: a client holds assets beyond publicly traded securities like private equity, real estate, business interests, concentrated positions, cryptocurrency, or other alternatives. Giving directly from these holdings to charity is operationally complicated for most programs.
The opportunity: Ren’s partnering sponsoring charities can accept complex assets, processing the gift and handling the valuation and operational work. The donor avoids capital gains on the contributed asset, receives a charitable deduction, and the proceeds flow into their DAF account for future giving.
What to ask: “If we could turn some of those assets into a meaningful charitable contribution without triggering gains, would that be worth a conversation?”
Scenario 3: The Business Exit or Liquidity Event.
The signal
A client is approaching a sale, IPO, or business transfer. The deal is moving, the tax bill is significant, and the window to act charitably is narrower than most business owners realize.
The opportunity
Business interests can be contributed to a DAF before a binding sale agreement is executed. Done properly, the donor avoids capital gains on the contributed shares, receives an immediate charitable deduction, and the sale proceeds flow into their DAF, available to support their chosen causes indefinitely.
Illustrative example
A business owner contributes $9 million in private company shares to a DAF before their sale closes. The contribution eliminates $1.8 million in capital gains taxes. Proceeds from the sale flow into the DAF and fund grantmaking to causes the family has supported for years. The timing is real — once a binding sale agreement is signed, the window closes.
What to ask
“Before anything closes, is there a charitable strategy we should be building into this transaction?”
Scenario 3: The Business Exit or Liquidity Event.
The signal: a client is approaching a sale, IPO, or business transfer. The deal is moving, the tax bill is significant, and the window to act charitably is narrower than most business owners realize.
The opportunity: business interests can be contributed to a DAF before a binding sale agreement is executed. Done properly, the donor avoids capital gains on the contributed shares, receives an immediate charitable deduction, and the sale proceeds flow into their DAF, available to support their chosen causes indefinitely.
Illustrative example: a business owner contributes $9 million in private company shares to a DAF before their sale closes. The contribution eliminates $1.8 million in capital gains taxes. Proceeds from the sale flow into the DAF and fund grantmaking to causes the family has supported for years. The timing is real — once a binding sale agreement is signed, the window closes.
What to ask: “Before anything closes, is there a charitable strategy we should be building into this transaction?”
