Giving Through a Donor-Advised Fund

 
 

Why Give Through a Donor Advised Fund?

Convenience: Manage all your giving in one place
Tax benefits: Receive a deduction when you contribute to your DAF
Flexibility: Recommend grants whenever you choose

How to Set Up a Donor-Advised Fund (DAF)

A donor-advised fund is one of the easiest ways to organize your charitable giving, receive an immediate tax deduction, and support nonprofits over time. Setting one up is surprisingly simple.

1. Choose a DAF Sponsor

A “sponsor” is the organization that manages your fund. You can pick:

  • Community foundations (e.g., Aspen Community Foundation)

  • National charities (Fidelity Charitable, Schwab Charitable, Vanguard Charitable)

  • Some religious or mission-based foundations

What to consider:

  • Minimum opening balance (often $0–$25,000)

  • Fees

  • Investment options

  • Online tools and ease of making grants

2. Open the Account

You’ll fill out a quick application—usually entirely online. You’ll need:

  • Your name, address, and contact info

  • How you want the account titled

  • Successor advisor info (optional—who manages it if something happens to you)

This typically takes 10–15 minutes.

3. Make Your Contribution

You can fund the DAF with:

  • Cash

  • Appreciated stocks

  • Mutual funds

  • Cryptocurrency (at some sponsors)

  • Even private business interests or real estate (with larger sponsors)

Tax benefit: You get an immediate charitable tax deduction in the year you contribute—even if you don’t grant the money out yet.

4. Invest the Funds

Your contribution grows tax-free inside the fund.

Most sponsors let you pick:

  • Conservative, moderate, or aggressive portfolios

  • ESG or mission-aligned options

  • Money market funds (if you want to grant funds soon)

5. Recommend Grants to Charities

Any time you want to support a nonprofit, you simply:

  1. Log in to your DAF account

  2. Use the information below to locate our organization:
    Legal Name: Shining Stars Foundation
    EIN: 84-1526586
    Mailing Address: P.O. Box 1308, Aspen, CO 81612

  3. Submit the grant recommendation

The sponsor sends the funds directly to the nonprofit.