All that and more: Your DAF may surprise you

Written by Robin Elmerick, Senior Director of Effective Philanthropy

You might initially think of a donor-advised fund as a simple charitable savings account: contribute assets, immediately receive a tax deduction, if eligible, and recommend grants to your favorite 501(c)(3) nonprofits over time. While that is certainly true, many people are surprised to learn just how flexible a donor-advised fund can be. 

For many donors, the creative use of donor-advised funds opens the door to a larger charitable impact than they originally thought possible. Here’s how: 

Your fund grows and changes alongside your life 

Life changes, and your philanthropy can evolve right along with it. Whether you are preparing for retirement, selling a business, receiving an inheritance, experiencing a particularly high-income year, or simply discovering new causes that matter to you, a donor-advised fund provides flexibility to adapt your giving strategy over time. It can help you thoughtfully time charitable contributions and grantmaking decisions while also making it easier to give appreciated stock, closely held business interests, real estate, and other noncash assets in tax-efficient ways. As your goals, finances, and priorities change, your donor-advised fund can continue to support the impact you want to make. 

Your fund can help you engage the next generation 

Many donors use their donor-advised funds to involve children, grandchildren, and other family members in philanthropy. Because grants can be recommended over many years to 501(c)(3) organizations locally and across the country, donor-advised funds create opportunities for ongoing conversations about values, generosity, and community impact across generations. And no matter where life takes you or your successor advisors, your fund can continue to serve your family’s charitable goals. We actively support fundholders and successor advisors living throughout the United States, providing the same personalized guidance and administrative support regardless of where they call home. 

We support your areas of focus 

Working with a local community foundation like CICF, Indianapolis Foundation, or Hamilton County Community Foundation, adds the important elements of flexibility, personalization, and expertise. Unlike national commercial donor-advised fund providers, community foundations combine the administrative advantages of a donor-advised fund with deep local knowledge and personalized philanthropic support. We can help identify community needs, connect you with nonprofit organizations of all shapes and sizes, and explore creative strategies tailored to your own charitable interests. Our teams are here to help you support your favorite causes, whatever they may be. 

The takeaway? Your donor-advised fund is much more than just a giving account—it is a flexible tool for building a thoughtful, lasting charitable legacy that supports the causes and communities you care about, in Central Indiana and wherever your generosity leads. 

About the Author

Robin Elmerick, senior director of effective philanthropy has been with CICF since 2019. A certified Impact Philanthropy Advisor, she works closely with fundholders to help them define their philanthropic strategies and maximize their impact. With a background in nonprofit leadership and consulting, she is passionate about bridging the needs of the community with the missions of nonprofits and the passions of our fundholders, aligning all three to create meaningful change in Central Indiana and beyond.