How do I make grants from my DAF?

After your fund is set up, you recommend grants to your DAF custodian, who then distributes funds to the nonprofits you choose. Many custodians allow online recommendations and you can typically recommend grants as often as you like.

5 Questions Answered About Donor Advised Funds (DAFs)

Q: What is a Donor Advised Fund?

A donor-advised fund (DAF) is a charitable giving account established through a nonprofit, bank, community foundation, or financial services provider. You contribute to the account, receive an immediate tax deduction, and then recommend grants to charities over time.

Q: Why do donors use DAFs?

DAFs make giving easier by letting donors manage charitable gifts in one place, control timing, contribute different asset types, and optionally give anonymously. They can also support long-term giving and help pass an advisory role to children or loved ones.

Q: How does a DAF compare to a private foundation?

DAFs can provide flexibility and long-term support without the administrative burden of a private foundation. They often have lower startup costs and fewer administrative requirements than foundations.

Q: What happens to the fund in the future?

A DAF can support charitable causes for many years. Donors may pass the advisory role to children or loved ones to create a multi-generational legacy, and depending on the sponsor, remaining balances may eventually sustain the sponsoring nonprofit’s mission.

February 24, 2026

Uncategorized

Donor Advised Funds (DAFs) are among the most flexible and increasingly popular ways for people in the Bay Area to make their charitable impact. 

Whether you’re new to DAFs or just want a clearer understanding of how they operate, here are five simple answers based on what most donors want to know.

In This Blog

1. What is a Donor Advised Fund?
2. Why do donors use DAFs?
3. How does a DAF compare to a private foundation?
4. How do I make grants from my DAF?
5. What happens to the fund in the future?
The Bottom Line

1. What is a Donor Advised Fund?

A DAF is a charitable giving account you establish through a nonprofit, bank, community foundation, or financial services provider. You contribute to the account, receive an immediate tax deduction, and then recommend grants to the organizations you support over time.

DAFs work like a personal giving fund – your donations are already committed to charity, but you choose when and where to distribute them.

2. Why do donors use DAFs?

DAFs simplify donating and provide more options; they enable you to:

Control the timing of your charitable gifts
Streamline all giving through one account
Contribute cash, stock, real estate, or other assets for potential tax advantages
Give anonymously when desired

For many families, it’s also a way to cultivate a long-term charitable habit and pass on the advisory role to children.

3. How does a DAF compare to a private foundation?

A DAF provides many of the same advantages—flexibility, long-term charitable support, and the ability to recommend grants—without the administrative burden.

Compared to foundations, DAFs typically:

Have lower startup costs
Allow full fair-market-value charitable deductions in many cases
Avoid private-foundation excise taxes and restrictions
Overall, they’re a simpler, more cost-effective way to manage sustained giving.

4. Help Keep the Momentum Going

Once your fund is set up, you “advise” your DAF custodian where you want your grants to go. The custodian then distributes the funds to the nonprofits you recommend.

You can:

Recommend grants as often as you like
Add new contributions at any time
Often submit recommendations online
Most custodians follow your wishes, and organizations like UWBA welcome the notification when you plan to recommend a grant.

5. What happens to the fund in the future?

A DAF can continue supporting charitable causes for many years. Many donors decide to:

Pass the advisory role to their children or loved ones
Create a multi-generational legacy of giving

If a DAF is created directly with a nonprofit sponsor, the remaining balance may eventually become an asset of that organization, sustaining its mission long term.

The Bottom Line

A Donor Advised Fund is a valuable resource for donors seeking flexibility, simplicity, and lasting impact. It allows you to give intentionally—on your schedule, to the causes you care about—while creating a legacy of generosity that endures.

To start making a gift from your Donor-Advised Fund, simply contact your fund administrator and request a grant to United Way Bay Area, specifying the amount and any designated programs you’d like to support. Together, we can make a profound difference in the lives of our neighbors today. Thank you for considering this impactful way to give.

To learn more about DAFs here