Donor Advised Fund

You're the donor. You donate your hard earned money in a DAF. Most commonly, donors contribute appreciated stock (if they were to sell that stock, they'd pay something like 30-40-50% in taxes.) So, rather than keep $5 million from a $9-$10 million sale, they just donate those shares into a DAF, and then the DAF, which is a charity unto itself, contributes that money to whatever charity the fund manager chooses.

Usually, DAF dough is stored in some form of index fund, and plunks along, growing, more or less, with the market. Most DAFs have minimums of a few hundred grand, and very loose restrictions as to what must be donated that year. This structure—loosey and goosey—is very different from that of, say, a university endowment, which has very strict regulations as to what must be distributed out of it each year.

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