It’s flexible: You can contribute cash or assets to the DAF. In addition, there are no timescales for making contributions or distributions. Donation size is up to you, as is the number of causes you choose to support and when you choose to make donations.
It’s tax efficient:
- You can reclaim Gift Aid on eligible cash gifts
- There is the potential for income and capital gains tax relief
- Legacy gifts to DAFs are exempt from inheritance tax
Admin is simple: governance, reporting, and compliance are managed by your DAF provider. There are no start-up costs beyond your initial investment.
They can grow in value: Funds within the DAF can be invested, and so the value of your funds may increase. Growth is usually tax-free, meaning even more funds are available, maximising your long-term charitable impact.
It can be anonymous: DAFs make it easy to support your favourite causes while maintaining privacy.
Donating through a DAF enables effective, impactful philanthropy. To understand whether a DAF is right for you, we recommend you contact your financial adviser. They will be able to tell you more and help you to select the right provider.