Donor-Advised Funds (DAFs): A Smart, Tax-Effective Way to Give to Lurie Children’s

Put simply, Donor-Advised Funds (DAFs) provide a smart way for individuals or families to give. By contributing cash or assets into an account, you receive immediate tax benefits, and then can direct those funds to charities over time. DAF giving offers a unique combination of tax benefits, flexibility, and potential growth, making it an attractive option for those who want to make an even larger charitable impact.

How Donor-Advised Funds Work

Though Donor-Advised Funds (DAFs) have been around for decades, they've recently surged in popularity, now accounting for 25% of all individual charitable giving in the United States. Here's how they work:

GIVE: You make a donation to your DAF account at a sponsoring organization – typically a financial service company or a community foundation – and you are eligible for an immediate tax deduction. The contribution could be anything from cash to assets like stocks, private business interests and cryptocurrency.   

INVEST & GROW: Your donation grows tax-free, while you are deciding which non-profits to support.

DISTRIBUTE: Later, once you determine where you would like to make your impact, you recommend a charity to the sponsoring organization, which will then disperse the gift as a grant to the non-profit.

When considering a DAF at the sponsoring organization, it's important to be aware of minimum contribution requirements to establish an account or potential fees. Certain DAF providers may have guidelines for grant-making, which can influence the types of charities you can support. To start your own DAF, you can research and select a sponsoring organization and open an account in a matter of minutes online or by calling the sponsoring organization. 

Harnessing Donor-Advised Funds for Tax-Savvy Giving

DAFs can offer several advantages over traditional donations.

• DAFs provide immediate tax benefits, allowing donors to deduct contributions in the year they are made. They offer flexibility, allowing donors to contribute funds whenever they choose and then allocate them to charities at their own pace. The invested funds can grow tax-free over time, increasing the impact of donations.
• Giving via DAF can simplify recordkeeping and provide a centralized platform for managing charitable giving to multiple charities and causes.
• For donors who prefer to keep their giving private, DAFs offer the option to anonymously make grants to charities.
• DAFs can be used for estate planning, ensuring that charitable intentions are carried out after the donor's passing. The donor can appoint family members as successors to oversee the DAF, ensuring that their charitable legacy continues. In cases where a family foundation can be costly and complex to manage, a DAF offers a more streamlined approach to philanthropic giving.

If you haven’t already, join the movement with a new way to support Lurie Children’s mission. To direct a gift to Lurie Children’s from your donor-advised fund, simply share our legal name, address and federal tax ID.

Legal name: Ann & Robert H. Lurie Children’s Hospital of Chicago Foundation

Mailing Address: 225 E. Chicago Avenue, Box 4, Chicago, IL 60611

Federal Tax ID: 36-3357006

Please contact Lurie Children's Foundation at donationinquiries@luriechildrens.org or 312.227.7500 with any questions you may have. You can also explore more ways to make a gift to Lurie Children’s through a financial or estate plan. We are here to help!

Listed below are the top DAF organizations to grant gifts to Lurie Children’s last year:

American Endowment Foundation 

Bank of America Charitable

Fidelity Charitable

Goldman Sachs Philanthropy Fund

J.P. Morgan Charitable Giving Fund

Jewish Federation of Metropolitan Chicago

Morgan Stanley Gift Fund

National Philanthropic Trust

Northern Trust Charitable Giving Program

Schwab Charitable Fund

The Chicago Community Trust

Vanguard Charitable

 

Search our blog Search

---