Charitable giving is for everyone. While some donors open donor-advised funds (DAFs) to include their children in their charitable legacy as successor advisors, individuals and couples without children are increasingly using DAFs, especially when guided by a financial advisor.

Consider these six ways DAFs offer an exceptional degree of adaptability for single donors and couples without children.

1. DAFs Allow for Timed Funding.

You can fund a DAF on your schedule. Once the DAF has been established, how you fund is up to you.

  • DAFs are often funded throughout the donor’s lifetime.
  • Some donors prefer to contribute to their DAF later in life or upon death.

2. DAFs Accommodate Timed Distribution.

Donors can establish a DAF with a disposition plan that recommends grants be made to specific charities (or types of charities) once they pass away.

3. Privacy Is Up to the Donor.

DAFs offer donors the option of granting privately or openly.

  • Many donors choose to recommend grants to charities from their DAF anonymously, allowing them to avoid solicitation or unwanted recognition.
  • Some may choose to reveal their identity to charities once they’ve passed away, while others prefer to remain anonymous even posthumously.
  • Other donors want to use their DAF to establish a legacy that lives on, receiving acknowledgement so that they can leave a philanthropic mark.

4. Donors Make the Impact They Want.

Anyone can establish DAFs to make an impact – and there is freedom in the type of impact you make:

  • Some donors use DAFs to grant over time to various charities rather than recommending a large grant to any one organization. This allows the DAF to be a regular source of funding for the causes that are important to them.
  • Others prefer to recommend one large grant after death, or several large grants to a select few charities. This helps donors make a clear and powerful impact, possibly allowing charities to fund projects that require large lump sums.

5. Donors Can Name the DAF a Beneficiary for an IRA.

Individual donors and couples without children can name their DAF as the beneficiary of their individual retirement account (IRA), even if they leave other assets to (family or non-family) heirs. This can further maximize their charitable giving potential and ensure the money goes to worthy causes .

6. Donors Leave the Legacy They Choose.

Leaving a legacy is important to everyone whether they have children or not. DAFs offer the flexibility to let donors decide what the concept of legacy means to them.

  • Individuals and couples without children could name siblings, other heirs, trusted financial advisors, or friends as successor advisors to their DAF.
  • Business owners without kids could establish a corporate DAF so their company can engage employees to fund causes in their communities.
  • Donors could leave recommendations for how the DAF should grant posthumously.

Looking to Leave a Legacy? American Endowment Foundation Can Help.

American Endowment Foundation (AEF) believes in expanding philanthropy – and we want to help you do it. Whether you’re an individual donor, a couple with no children, someone with several heirs, a firm, or a financial advisor representing your clients’ interests, we can help you make a charitable impact. Contact AEF today, and let’s talk DAFs.