Donor Advised Funds (DAF) are charitable investment accounts that allow donors to contribute funds and receive an immediate tax deduction. The funds are then invested and grow tax-free while donors recommend grants to qualified charities on their own timeline.  There are some restrictions on what DAFs can fund — for instance, donors can’t receive a benefit like gala or athletic tickets in exchange for their grants.  However, DAFs are easy to establish and incredibly popular due to their flexibility, tax-free growth and options for anonymity.   

Currently, there are approximately $250 billion dollars held in DAFs. Unlike private foundations, however, DAFs are not subject to an annual minimum distribution requirement. 

Donor Advised Fund Day (DAF Day) is the brainchild of a coalition of nonprofits and business groups. This coalition is urging individuals to commit to granting at least 10% of the balance of their Donor Advised Fund each year on the second Thursday in October; this year DAF Day falls on October 9, 2025.  If every donor who has a DAF granted 10% of their balance, it would be one of the largest single days of philanthropy in the history of this country. These dollars, already designated for charity, are just waiting to be put to use!   

DAFs can be used to support all the evergreen priorities at Duke — including financial aid, faculty support, the climate initiative and more.  We hope you will consider participating in DAF Day 2025.  And, if you are interested in speaking to one of our Gift Planning Officers about gifts from your DAF or why you might consider establishing a DAF, please reach out to our office. 

This information is provided with the understanding that neither Duke University nor the author are providing legal, accounting, or other professional advice or counsel. Please consult your personal counsel about the financial, tax, and legal implications of any gift. 

About the author

Anne Bradley

anne.bradley@duke.edu

Anne helps donors and their professional advisors understand and consider charitable gifts that require some measure of tax, legal or financial planning. Anne’s work includes charitable gift and tax issues related to estates, trusts, life income gifts such as charitable gift annuities and charitable remainder trusts, real estate, and other complex gift arrangements. In 2023, Anne received the Chartered Advisor in Philanthropy designation from the American College of Financial Services. Prior to joining Duke, Anne managed corporate, foundation, and government fundraising for the Detroit Zoological Society. When she’s not at work, Anne roams like Roosevelt visiting our nation’s National Parks.