Guides for thoughtful giving.

A donor-advised fund, or DAF, is a charitable giving account held by a sponsoring organization that is itself a public charity. Think of it as a dedicated charitable savings account: you contribute now, then recommend grants to the causes you care about over time.

How it works

1. Contribute. You make an irrevocable contribution of cash, securities, or other assets to your fund.
2. Deduct. Because the sponsor is a public charity, you’re generally eligible for a tax deduction in the year you contribute, subject to IRS limits.
3. Invest. While the money is in your fund, it can be invested and grow free of tax.
4. Recommend grants. When you’re ready, you recommend grants to qualified public charities. The sponsor reviews each recommendation and sends the grant.

Why donors use them

• Separate the timing of your tax deduction from your decisions about where to give.
• Give appreciated securities without selling them first.
• Keep records simple, with one acknowledgment for each contribution.
• Involve family members in your giving, now and in the future.

Good to know

• Once you contribute, the sponsor has legal control of the assets. You advise, and the sponsor approves.
• Grants can’t provide personal benefits to you, such as event tickets or memberships.
• To recommend a grant to us, use our legal name, Animal Relief Network, and EIN 33-3924217.

1. Choose a sponsor. Options include national donor-advised fund programs, community foundations, and single-issue charities. Compare minimum contributions, fees, investment choices, and minimum grant amounts.
2. Open your account. Name your fund and decide whether to add successors or advisors who can recommend grants with you or after you.
3. Make your first contribution. Cash is simplest. Appreciated stock held for more than a year is often the most tax-efficient choice, because you can generally avoid capital gains tax on the appreciation and deduct the fair market value.
4. Choose how to invest. Most sponsors offer a menu of investment pools. Pick one that matches how soon you plan to recommend grants.
5. Recommend grants. Search for the charity by name or EIN in your sponsor’s online portal. For Animal Relief Network, use EIN 33-3924217. You can suggest a purpose for the grant or leave it unrestricted.
6. Keep your records. Your sponsor provides an acknowledgment for each contribution. Grants made from the fund aren’t separately deductible, because you already took the deduction when you contributed.

Estate gifts, also called planned or legacy gifts, let you support the causes you care about beyond your lifetime, often without affecting your finances today.

Common ways to leave a legacy

• A gift in your will or living trust. Leave a specific amount, a percentage of your estate, or what remains after other bequests are made.
• Beneficiary designations. Name a charity as a beneficiary of a retirement account, life insurance policy, or bank or brokerage account. This is usually done with a simple form from your provider, without changing your will.
• Charitable remainder trusts. Receive income during your lifetime, with the remainder passing to charity. Learn more on our gift planning page.

Why retirement accounts can make sense

Heirs usually owe income tax on money they inherit from traditional IRAs and 401(k) plans. A qualified charity receives those same assets without owing income tax, so leaving retirement assets to charity and other assets to family can help your estate go further.

Sample bequest language

I give to Animal Relief Network, a Texas nonprofit organization with principal offices at 3800 N Lamar Blvd., 2nd Fl, Ste. 200, Austin, TX 78756, EIN 33-3924217, [the sum of $____ / ____% of my estate / the residue of my estate] for its general charitable purposes.

Next steps

• Talk with your estate planning attorney about the right approach for your family.
• If you’d like, let us know about your plans so we can thank you and honor your wishes. Sharing is always optional.

Businesses of every size can make a real difference for animals while engaging employees and strengthening ties with their communities.

Ways businesses give

• Direct contributions. Corporate gifts of cash or other assets to qualified charities are generally deductible within IRS limits.
• Employee matching gifts. Many companies match employee donations. Check with your human resources team to see whether your employer offers a program.
• Volunteer grants. Some employers donate to organizations where their employees volunteer.
• Payroll giving. Employees give a small amount from each paycheck, which adds up over the year.
• In-kind donations. Products, services, or equipment can meet real needs for animal care organizations.
• Sponsorships. Support an event or program and receive recognition for your company.

Getting started

Set a giving budget, choose causes that reflect your company’s values, and involve employees in the decisions. To talk about a program for your business, email [email protected].

Before you give, it’s smart to confirm that an organization is a registered charity and to learn how it operates. These free tools can help.

• IRS Tax Exempt Organization Search. The official source for confirming an organization’s federal tax-exempt status and eligibility to receive deductible contributions. You can also view filed returns for many organizations.
• Candid. Formerly GuideStar and Foundation Center, Candid publishes profiles, financial information, and tax filings for U.S. nonprofits.
• Charity Navigator. Rates many charities on measures such as financial health, accountability, and impact.
• BBB Wise Giving Alliance. Evaluates national charities against its Standards for Charity Accountability.

Tips

• Search by EIN to be sure you’ve found the right organization. Ours is 33-3924217.
• Not every legitimate charity is rated. Newer and smaller organizations often aren’t.
• Ask questions. A trustworthy charity will be glad to explain how it uses donations.