The 3-Minute Advisor's Guide to Donor-Advised Funds

A DAF is a charitable giving account. A donor contributes assets, receives an immediate tax deduction, and then recommends grants to charities over time — rather than having to pick every recipient at the moment of the gift.

Through Ren’s partnering sponsoring charities, a donor-advised fund can accept business interests (C-corp, S-corp, LLC, and partnership interests), alternative investment interests (private equity, venture capital, hedge fund positions), cryptocurrency, and real estate, in addition to cash and publicly traded securities.

Clients planning a business sale, holding a concentrated or appreciated position, expecting an unusually high-income year, discussing family legacy, currently running a private foundation, or giving regularly but inefficiently are all strong candidates.

Contributing an appreciated asset directly — rather than selling it first — generally lets the donor avoid long-term capital gains tax and claim a deduction based on the asset’s appraised or fair market value.

Complex-asset contributions (business interests, real estate, alternatives) should begin well in advance of any year-end deadline, since appraisal and administrative steps take time.

A DAF can involve the next generation in recommending grants and setting charitable priorities, without requiring the formal governance structure of a private foundation.