Frequently asked questions

what is a donor advised fund?

A Donor Advised Fund (DAF) is a philanthropic vehicle that is maintained and operated by a 501c3 public charity.  All contributions made to your DAF account are tax-deductible contributions.  The contribution is then invested into impact portfolios and contributors use that money to grant out to charities of their choice over time.  There are no requirements to give the money away immediately.  So, as you are deciding which great organizations to give to (with our help, if you need), your money can grow tax free in investment vehicles.  

Who can open a Donor Advised Fund?

Organizations, families, individuals or businesses can establish a donor advised fund.  $5,000 is the minimum account opening balance.  Once the fund is established, individuals can make additional contributions and control when they receive the tax deduction.

To learn more about the benefits and incentives of opening a DAF, visit our For Donors page.

 

How is impact charitable different from other dafs?

At the end of 2014 there was over $70 billion in DAFs in the US and very few of those dollars were invested in alignment with the donor’s charitable purposes.  Unfortunately, the result is the DAF investment portfolio may create negative impacts that counter the donor’s positive philanthropic efforts.  Impact Charitable believes impact investing is the solution to this dichotomy.

We believe money set aside for charity should be invested in ways that align with the donor’s philanthropic goals.  We work with our donors to achieve their desired impacts through grants, targeted concessionary return investments, and market-rate investments.  

We provide you with education on and access to impact investment firms and funds on a local, national and global level through our investment platform.  

And, even better - we've launched our new Passion Portfolios!  This is the first place where you can both invest and give within your area of passion.  

 

I Have an existing Donor Advised Fund; can I transfer it?

It's easy to transfer your existing fund to Impact Charitable to tap into the impact investment product suite.  As we say, "Roll over your DAF for Impact!"  The process involves requesting a grant from your existing donor advised fund sponsor and using the grant to fund your new DAF.  Contact us to learn more.  

 

can i pull returns from the investments out of my donor advised fund?

Because the assets in the donor advised fund have been donated, they cannot be transferred back to you for your personal gain.  However, the great news is the returns generated from your impact investments will allow you to ultimately give more away!  

And don't forget, you are doubling your impact: first through the investment, and then through the grants you can give with the investment returns.