How it works
A donor-advised fund (DAF) with DonorsTrust allows you to support the causes you care about while maintaining flexibility, privacy, and long-term alignment with your values.
How a donor-advised fund works
An Easy 4-Step Process
STEP 1
Complete the application to open your fund
STEP 2
Fund your account with cash, stock, or other assets
STEP 3
Recommend grants to charities of your choice
STEP 4
Build your legacy by creating a lasting impact
STEP 1
Complete the application to open your fund
STEP 2
Fund your account with cash, stock, or other assets
STEP 3
Recommend grants to charities of your choice
STEP 4
Build your legacy by creating a lasting impact
What is a DAF?
Donor-advised funds (DAFs) offer a simple, strategic, tax-advantaged way to support the charitable organizations you care about. In this video, DonorsTrust President and CEO Lawson Bader explains the basics of DAFs in less than 90 seconds.
What is a DAF?
Donor-advised funds (DAFs) offer a simple, strategic, tax-advantaged way to support the charitable organizations you care about. In this video, DonorsTrust President and CEO Lawson Bader explains the basics of DAFs in less than 90 seconds.
STEP ONE: APPLY
Complete the Application
Opening a donor-advised account at DonorsTrust is easy—and it puts you on a path to simpler, more strategic giving.
Fill out our 10-minute form to get started!
STEP ONE: APPLY
Complete the Application
Opening a donor-advised account at DonorsTrust is easy—and it puts you on a path to simpler, more strategic giving.
Fill out our 10-minute form to get started!
STEP 2: CONTRIBUTE
Fund Your Account
Fund your account with an initial contribution of at least $10,000. You may contribute a wide range of assets, including cash, publicly traded securities, appreciated or privately held assets, cryptocurrency, and real estate. All contributions are immediately tax-deductible and available for grantmaking.
Capital gains taxes are not assessed on donated appreciated assets, allowing you to give more efficiently. As required by law, contributed assets are held and administered by DonorsTrust.
STEP 2: CONTRIBUTE
Fund Your Account
Fund your account with an initial contribution of at least $10,000. You may contribute a wide range of assets, including cash, publicly traded securities, appreciated or privately held assets, cryptocurrency, and real estate. All contributions are immediately tax-deductible and available for grantmaking.
Capital gains taxes are not assessed on donated appreciated assets, allowing you to give more efficiently. As required by law, contributed assets are held and administered by DonorsTrust.
STEP 3: CHOOSE CAUSES
Recommend Grants
Once your fund is established, you can recommend grants to qualified nonprofit organizations in the U.S. and select charities abroad.
DonorsTrust has supported thousands of organizations across education, policy, faith, arts, healthcare, and community life. Click here to see a sampling of grantees supported by our clients.
STEP 3: CHOOSE CAUSES
Recommend Grants
Once your fund is established, you can recommend grants to qualified nonprofit organizations in the U.S. and select charities abroad.
DonorsTrust has supported thousands of organizations across education, policy, faith, arts, healthcare, and community life.
STEP 4: BUILD LEGACY
Create Lasting Impact
Your DonorsTrust fund is designed to support your giving today and carry your charitable vision into the future. Our philanthropic advisors and experts can help you:
- Develop a long-term giving strategy
- Establish a legacy plan to safeguard your donor intent
- Stay informed about the landscape of American philanthropy and charitable efforts to advance freedom
- Support the next generation of philanthropists
STEP 4: BUILD LEGACY
Create Lasting Impact
Your DonorsTrust fund is designed to support your giving today and carry your charitable vision into the future. Our philanthropic advisors and experts can help you:
- Develop a long-term giving strategy
- Establish a legacy plan to safeguard your donor intent
- Stay informed about the landscape of American philanthropy and charitable efforts to advance freedom
- Support the next generation of philanthropists
Specialized Giving Options
DonorsTrust offers these programs for donors who want to build beyond their donor-advised fund. These initiatives are available depending on your goals, stage of life, or preferred level of involvement.
Novus Society
This community for philanthropists under age 40 focuses on education, mentorship, and building lifelong giving habits.
BEST FOR: younger donors seeking a principled entry point for growing their philanthropy.
Whitney Ball
Legacy Society
DonorsTrust’s bequest-giving program allows donors to fund their account with a gift made from their estate.
BEST FOR: donors planning long-term or multi-generational impact.
Whitney Ball
Memorial Fund
Named for our late president, this fund provides strategic support of organizations advancing liberty at the Board’s discretion.
BEST FOR: donors who want to support DonorsTrust’s mission with maximum flexibility.
Types of Contributions
DonorsTrust accepts a variety of assets, allowing our donors to structure their charitable contributions efficiently and tax-effectively.
With an initial contribution of $10,000, you can open your donor-advised fund account with DonorsTrust. Philanthropists under age 40 can open their account with $1,000 and begin recommending grants once their account balance reaches $5,000.
CASH
CRYPTO CURRENCY
PUBLICLY TRADED SECURITIES
MUTUAL FUNDS
PRIVATELY HELD STOCK
REAL ESTATE & OTHER PROPERTY
Fees & Investment Options
| FEE SCHEDULE | FEES |
|---|---|
| First $1 million | 75 bps (0.75%) |
| Next $1.5m | 65 bps (0.65%) |
| Next $2.5m | 60 bps (0.60%) |
| Next $5m | 50 bps (0.50%) |
| Next $15m | 40 bps (0.40%) |
| Above $25m | Please call to discuss |
DonorsTrust operates independently and is not subsidized by any banking institution or private foundation. As a 501(c)3 public charity, DonorsTrust receives occasional gifts from donors who appreciate our unique purpose within the free-market community. However, administrative fees are our primary means of sustaining our operations.
All donor-advised accounts include:
- Grant due diligence and processing
- IRS compliance and reporting
- Quarterly account statements
DonorsTrust’s standard administrative fees start at 0.75% and decline with larger accounts. Select program services such as grant tracking and grantee research are available for additional fees.
Donors may advise on the investment of funds in their DAF accounts.
DonorsTrust offers a variety of low-cost investment options as well as several managed options from Merrill Lynch. Accounts of more than $1 million have the option to recommend an outside investment advisor to follow a customized investment plan. Contact us for more details, or click below to review the investment options and their performance.
Frequently Asked Questions
What is a donor-advised fund?
A donor-advised fund is a charitable giving account that allows you to support the causes you care about, now and over time.
You contribute assets to your fund, which are tax-deductible, and recommend grants to eligible nonprofit organizations when you choose. Funds can be invested for potential tax-free growth, helping extend your long-term charitable impact.
Donor-advised funds simplify giving by consolidating donations, recordkeeping, and tax reporting into a single account.
How can I give anonymously and still recieve a tax deduction?
People have many reasons for wanting to keep their charitable giving private, and a donor-advised fund offers a way to increase the privacy of your giving. Any contributions to your DonorsTrust account that have to be reported to the IRS will not become public information, and DonorsTrust never publishes the names of its donors. When making grants, you have the option to send your grant anonymously to the receiving charity; it will simply come to the charity as a gift from a DonorsTrust advisor who wishes to remain anonymous.
Can DonorsTrust help me reduce the capital gains tax liability associated with my appreciated stock, closely held stock, or unexpected windfall?
Appreciated Stock
If you own appreciated stock and want to distribute it to one or more charities and avoid incurring capital gains tax, make a single transfer of stock to DonorsTrust and receive the market value for your gift. Then, at your leisure, request DonorsTrust to distribute gifts from the contribution.
Closely Held Stock
If you possess closely or privately held stock, DonorsTrust can help you avoid incurring capital gains tax while giving you the greatest possible tax deduction. Contribute the stock to DonorsTrust and calculate your tax deduction based on the market value of the stock rather than the cost basis. At your leisure, make any number of charitable gifts from the balance of your contribution. Because of the complexities involved, it is important to engage experts at DonorsTrust as early as possible if you seek to donate closely held stock.
Unexpected Windfall
If you would like to give to charity to reduce your tax burden but don’t have time to think through all the details right now, open an account at DonorsTrust to immediately receive a full tax deduction for your contribution. Then, you can disburse charitable gifts from your account at your leisure and across multiple years if you wish.
I would like to secure my charitable intent after my lifetime. What can DonorsTrust do on my behalf?
Do you wonder if your heirs will donate your hard-won earnings to causes with which you disagree? Open a DonorsTrust account and write a specific charitable intent statement—even listing what charities you will or won’t fund. Give your family the opportunity to preserve your intent as successor advisors to your account and rely on DonorsTrust to protect and enforce it.
Comparing DonorsTrust
| Feature/Concern | DonorsTrust | Big-Box Donor-Advised Funds |
|---|---|---|
| Grant Approvals | Gives only to organizations that do not work against the principles of limited government, personal responsibility, and free enterprise. | May give to causes that conflict with your principles. May deny grants for ideological reasons. |
| Donor Intent and Legacy Protection | Written donor intent statements honored during life and forever after death. | No binding commitment to follow donor intent beyond legal minimums. Future boards may redirect funds. |
| Values Alignment | Focuses solely on conservatives, libertarian, and faith driven donors and their charities. | No mission alignment guarantees. |
| Grant Review Process | Every grant is vetted to ensure it aligns with the donor’s stated principles. | Review is typically limited to legal compliance which means that funds could be applied to causes that work against a donor’s values. |
| Personal Service | Personalized guidance with direct access to senior staff and expertise; no call centers or AI chatbots. | Limited personal relationships, call centers, and virtual assistants. |
| Community | A network of like-minded donors and experienced staff providing opportunities for collaboration and idea sharing. | No shared values-based donor community. |
| Tax Benefits | Immediate tax deduction, capital gains savings, and growth potential. | The same – but without values alignment, community expertise, or donor intent protections. |
| Privacy and Anonymity | Donor names are never publicly listed and grants can be made anonymously. | Grantor information can be disclosed in public reports or via 990 filings. |
| Feature/Concern | DonorsTrust | The Other Guys |
|---|---|---|
| Legacy Planning | Ensures donor intent and principles live on after death through managed legacy accounts. | Legacy often diluted by later generations’ shifting values or management. |
| Cost Efficiency | No startup costs; low administrative fees; no annual excise taxes. | Significant setup and annual costs including legal, accounting, and staffing. |
| Compliance Headaches | No 5% payout deadline. | A private foundation’s 5% payout deadline is 12 months after the end of its tax year. This means if the foundation has a calendar year tax year, it must distribute at least 5% of its previous year’s assets by December 31st of the following year. |
| Complete Privacy | Grants can be made anonymously and donor names are not publicly disclosed. | Must file public IRS Form 990 with donor and grantee details. |
| Values Alignment | Grants only to organizations that align with liberty, personal responsibility, and free enterprise–never to groups that undermine them. | Depends entirely on family oversight; can drift from founding values over generations. |
| Community and Network | Experienced advisors with deep connections connecting you with grantees that can help you achieve your goals and are aligned with your values. | Isolated to family and internal trustees. |
| Feature/Concern | DonorsTrust | Community Foundation |
|---|---|---|
| Values Alignment | Grants only to organizations that align with liberty, personal responsibility, and free enterprise–never to groups that undermine them. | Generally broad and often supporting progressive causes; no guarantee of ideological alignment. |
| Protection of Donor Intent | Donor intent is rigorously documented and protected for life and beyond through written intent statements and governance structures. | Often no formal mechanism to protect intent once the donor passes. |
| Complete Privacy | Grants can be made anonymously and donor names are not publicly disclosed. | Typically lists donor names publicly; limited anonymity options. |
| Cost Efficiency | No startup costs and low administrative fees. | Moderate fees, often higher than DonorsTrust. |
| Flexibility and Control | Donors retain full advisory privileges—decide when and where to give, with expert support from senior staff | Moderate control; grants must align with the foundation’s community priorities. |
| Legacy Planning | Ensures donor intent and principles live on after death through managed legacy accounts. | Legacy merges into general funds or is redirected at the foundation’s discretion. |
| Community and Network | Experienced advisors with deep connections connecting you with grantees that can help you achieve your goals and are aligned with your values. | Broad, ideologically diverse donor community with no shared philosophical base. |
Let’s Start the Conversation
Want to learn more about DonorsTrust’s services? Reach out to receive more information, have your questions answered, or speak with a philanthropic advisor.