There are many business owners and executives among the wide range of donors who have established donor-advised funds (DAFs). However, relatively few companies they own or manage have set up corporate DAFs. Businesses have often been generous in supporting charities and causes over the years, especially during times of crisis. According to Giving USA’s 2025 report, corporate giving was up 9.1% in 2024, rising to $44.40 billion. Yet, a good number of these companies have not established a strategic giving plan.  

Establishing a corporate DAF is simple and can help businesses codify a plan for charitable giving that aligns with their values. The process is similar to creating a personal or family DAF, though the initial contributions are typically larger, especially if the company is “bunching” charitable gifts together to maximize tax benefits. Some firms have established company foundations over the years, but like personal private foundations, these are often cumbersome to operate and more expensive than corporate DAFs. Some companies have converted foundations to DAFs so they can enjoy the benefits of having a charitable vehicle but with fewer administrative burdens. 

Corporate DAFs have not always been heavily promoted. However, since companies recognize the importance of giving back and want to demonstrate their commitment to their communities and employees, the interest in them has grown, particularly among privately owned companies.  

10 Key Benefits of Establishing a Corporate DAF  

Opening a corporate donor-advised fund can provide the following benefits: 

  1. Corporate DAFs enable companies to structure their giving. 
  2. Firms or their owners can gift substantial amounts to the DAF during profitable years, allowing it to grant even when profits decline. 
  3. Companies can develop a focused mission statement so their DAF can support causes or charities that are important to the firms, management, and employees. 
  4. The mission of the DAF makes it easier to politely decline requests for support when a soliciting charity’s mission does not align with that of the firm. 
  5. Corporate DAFs enable companies to have a greater impact on the causes and charities they support rather than making many small donations. 
  6. A DAF will help the firm’s leaders structure and determine a charitable giving budget. 
  7. The DAF structure can provide opportunities for staff to be part of a philanthropy committee, identifying and vetting potential grantees, determining which ones are most deserving, and deciding how much to grant to them. 
  8. Employee engagement and volunteerism will increase when partnering with charities that are meaningful to them. 
  9. All employees, but especially younger or newer ones, will have more pride in their work and the company. 
  10. The name of the corporate DAF (i.e., “Jones Real Estate Giving Fund”) can enhance public-relations benefits and garner positive recognition for grants or sponsorships (however, like individual donors, corporate donors cannot receive any impermissible benefits, like event tickets or golf outings). 

12 Helpful Guidelines for Corporate DAFs 

The following broad guidelines have been helpful for firms that have established corporate DAFs and are notable for those that are considering one: 

  1. Develop one mission for all the company’s offices. The mission does not have to benefit only one cause, but it should be somewhat narrow in scope so employees and charities do not ask for donations outside those boundaries. 
  2. Establish a committee in each office or have a representative from each office on the philanthropy committee. The committee should have term limits so everyone who wants to participate can. 
  3. Provide an annual giving budget to the committee or offices. 
  4. The executive team can decide on all or the bulk of the dollars to be granted. However, allowing employee participation for some grants will engender satisfaction and pride. 
  5. Select only one or two executives or employees to submit the grant recommendations to the DAF sponsor. If there is only one, select a successor advisor in case that person leaves. 
  6. If grants are small, do not send out Requests for Proposals to different charities since this can place a burden upon the charities that would need to respond. 
  7. Determine the source(s) of funding for the DAF. Will the company or a limited group of executives provide the funding? 
  8. Corporate DAFs are not designed to be fundraisers in which numerous employees or outside partners would be asked to contribute. 
  9. Grant recommendations should be submitted to the DAF sponsor only several times per year – and not in November and December since charities are extremely busy then and need grants throughout the year. Limiting the granting periods enables firms to be much more efficient with their giving. 
  10. Minimum grant sizes should be larger from corporate DAFs than from individuals. Charities welcome all contributions from individual donors, but some may question why they would only receive a couple hundred dollars from a firm. 
  11. DAFs are not used as pass-through accounts in which all contributions to are immediately re-granted to charities. Companies will want to make some grants relatively soon after opening the account, but DAFs are typically designed for both short-term and long-term granting purposes. 
  12. Corporate DAFs are not used to match employee contributions to charities. 

Furthermore, keep in mind that financial advisors may benefit from helping their clients create corporate DAFs as these can enable them to meet C-Suite executives at the companies and manage additional assets.  

Want to Discuss Corporate DAFs in Detail? AEF Is Here.  

Overall, the core benefits of corporate DAFs go to the companies and the charities they support, especially to the employees who will appreciate the company’s efforts to support charities in their communities and around the country and world. 

As part of our mission to expand philanthropy, American Endowment Foundation (AEF) often works with companies to set up corporate DAFs. If you’d like to know more, reach out to AEF now.  

NOTE: An earlier version of this article was also published at Advisor Perspectives.