By Jill Koorndyk, Vice President, Donor Services
Are you making the most of your donor-advised fund? Whether you have a Dayton Foundation Charitable Checking Account,℠ an Invested Donor-Advised Fund or a Family Foundation Plus℠ fund, a DAF can be one of the most flexible and tax-efficient ways to carry out your charitable giving. Read the following five tips to help you use your DAF to maximize both your philanthropic impact and financial benefits.
1. Define Your Charitable Goals First
Before you make contributions or recommend grants, take time to clarify what you want your giving to achieve. Are you focused on local community needs, global humanitarian work, environmental causes, education or something else? Having a charitable plan will help you stay consistent, measure your impact and avoid making gifts without a clear purpose. Once you have a plan, you can focus your donations on charities that align with it.
2. Contribute Appreciated Assets
Instead of donating cash, consider contributing appreciated securities you’ve held for more than a year. You avoid paying capital gains tax on the appreciation while still receiving a charitable deduction for the full fair market value. This allows you to give more without increasing your out- of-pocket costs.
3. Use “Bunching” to Maximize Deductions
If your itemized deductions fall short of the standard deduction threshold, which for 2026 is $16,100 for individuals and married couples filing separately and $32,200 for married couples filing jointly, you can “bunch” multiple years’ worth of charitable contributions into a single year by making a larger DAF contribution. This can push your deductions over the threshold in that year, allowing you to itemize and potentially reduce your tax bill while still distributing grants to charities in future years. This strategy can be particularly beneficial in a high-income year, such as when you sell a business, receive a bonus or experience another significant taxable event.
4. Research Before You Recommend Grants
A DAF gives you time to be thoughtful about where your money goes. Use this flexibility to research organizations thoroughly – review their missions, financial health and track records of impact. The Dayton Foundation’s donor services staff are happy to help you with this research or answer questions anytime.
5. Involve Your Family in Giving Decisions
Your DAF can be a powerful tool for teaching children, grandchildren or others close to you about generosity and values. Invite them to help choose causes, review potential nonprofits or even set aside a portion of the fund for their own grant recommendations. This builds a legacy of giving.
A DAF is more than just a tax tool. It’s a platform for intentional, impactful philanthropy. For more information on DAFs and how they can help you support the causes you care about most, contact a member of our Development and Donor Services department at (937) 222-0410.