Understanding Donor Advised Funds

The Basics

What Is a Donor Advised Fund?

Think of it as a charitable savings account — designed to make strategic, tax-smart giving easy.

Your DAF

You Contribute

Grants to Emmanuel

Grows Tax-Free

A Giving Account With Superpowers

A Donor Advised Fund (DAF) is a charitable investment account managed by a sponsoring organization. You make an irrevocable contribution, receive an immediate tax deduction, and then recommend grants to your favorite charities — like Emmanuel — over time.

Unlike writing a check directly, a DAF lets your contribution grow tax-free through investments while you decide when and how to distribute it. It's one of the fastest-growing charitable giving vehicles in America.

          💡 Key Insight: You separate the timing of your tax benefit from the timing of your charitable giving — giving you maximum flexibility and impact.

        

Step by Step

How Does a DAF Work?

Four simple steps from contribution to Kingdom impact.

Contribute

Open & Fund Your Account

Open a DAF with a sponsoring organization (like Fidelity Charitable, Schwab Charitable, or the National Christian Foundation). Fund it with cash, stocks, real estate, or other appreciated assets. You receive your tax deduction immediately in the year you contribute.

Grow

Invest & Grow Tax-Free

Once contributed, your funds can be invested in a range of portfolios. Any growth is completely tax-free, meaning more money available for the Forward in Faith campaign and beyond. There's no capital gains tax on the investment growth.

Recommend

Recommend Grants to Emmanuel

When you're ready, recommend a grant to Church of Emmanuel's Forward in Faith campaign. You can schedule one-time or recurring grants, giving you full control of timing. Most grants are processed within a few business days.

Impact

Watch Your Gift Make a Difference

Emmanuel receives the grant to fund the campus expansion, new youth space, ADA upgrades, and the Medfield-Westwood church plant. Your generosity expands Gospel impact across New England — and your giving record stays beautifully organized.

Maximize Your Impact

Tax Advantages of a DAF

Strategic giving that's generous to others — and smart for your finances.

Immediate Tax Deduction

Receive a tax deduction the year you contribute, even if you distribute the funds to Emmanuel over three years to align with the campaign.

Avoid Capital Gains

Contribute appreciated stock or assets directly. You avoid capital gains tax entirely and deduct the full fair market value. More money for the Kingdom.

Tax-Free Growth

Funds grow through investments without any tax on gains. Your charitable dollars compound, generating even more capacity to give generously.

Bunching Strategy

Contribute multiple years of giving in one tax year to exceed the standard deduction, then distribute grants over the campaign's three-year timeline.

Family Giving Legacy

Name successors to your DAF account and teach your children the joy of generosity. Build a multi-generational legacy of faithful stewardship.

Simplified Recordkeeping

One contribution, one tax receipt. Your DAF provider tracks all grants. No more shoebox of donation receipts at tax time.

Side by Side

DAF vs. Other Giving Methods

See how a Donor Advised Fund stacks up against other common ways to support the campaign.

Immediate tax deduction

✓

Tax-free investment growth

✓

✗

Donate appreciated stock (no capital gains)

✓

Varies

Bunching multiple years of giving

✓

✗

Schedule recurring grants

✓

Manual

Family succession / legacy giving

✓

✗

Simplified tax receipts

✓

✗

Grant to multiple charities from one account

✓

✗

Minimum contribution required

Varies ($0–$5K)

None

Your Campaign Impact

Using a DAF for Forward in Faith

Here's how a DAF can amplify your giving to Emmanuel's $7.5M capital campaign.

One Vision, Two Initiatives — Powered by Smart Giving

The Forward in Faith campaign funds both the campus expansion (new multipurpose building, expanded sanctuary with 40% more seating, upgraded youth and kids spaces, ADA compliance) and the church plant in Medfield-Westwood led by Luke and Dana Proctor, launching January 2027.

A DAF lets you take a large tax deduction now while scheduling grants over the campaign's three-year timeline. If you have appreciated investments, you can contribute them directly — avoiding capital gains and putting more of your resources to work for the Gospel.

Million Goal

3 Yrs

Campaign Timeline

40%

More Sanctuary Seating

3,600

Sq Ft New Building

📖 Example: The Daniels Family

The family holds $30,000 in appreciated stock (originally purchased for $10,000).

↓

They contribute the stock to their DAF. They get a $30,000 tax deduction and pay $0 capital gains tax (saving ~$3,000).

↓

They schedule $10,000/year grants to Emmanuel over the 3-year campaign — while the remaining balance grows tax-free.

↓

Result: More money for the campaign, significant tax savings, and continued monthly giving stays untouched.

Questions Answered

Frequently Asked Questions

Everything you need to know before opening a Donor Advised Fund.

How much do I need to open a DAF?

It depends on the provider. Fidelity Charitable and Schwab Charitable have no minimum initial contribution. Vanguard Charitable requires a $25,000 minimum. Faith-based providers like National Christian Foundation (NCF) often start around $5,000. Many people start with whatever they planned to give to the campaign.

Can I still give to Emmanuel's general fund through a DAF?

Absolutely! You can recommend grants to Emmanuel's general operating fund, the Forward in Faith capital campaign, or any other qualified charity — all from the same DAF. Many families use their DAF for both regular tithes and campaign giving.

What can I contribute besides cash?

Most DAFs accept: publicly traded stocks and bonds, mutual fund shares, real estate, private business interests, cryptocurrency, and even complex assets like restricted stock. Contributing appreciated assets is often the most tax-efficient strategy since you avoid capital gains entirely.

Is my contribution to a DAF truly irrevocable?

Yes. Once you contribute to a DAF, the funds belong to the sponsoring charity. However, you retain advisory privileges — meaning you recommend which charities receive grants, and sponsors approve nearly all recommendations to qualified 501(c)(3) organizations like Emmanuel. Think of it as giving up ownership but keeping the steering wheel.

Are there any fees associated with a DAF?

Yes, but they're typically modest. Most providers charge an annual administrative fee (often 0.60% or less) plus underlying investment fees. These are generally lower than private foundation costs and there's no legal or accounting overhead. The tax savings and investment growth usually far outweigh the fees.

How long does it take for Emmanuel to receive a DAF grant?

Most grant recommendations are processed within 2–5 business days. The sponsoring organization sends a check or electronic transfer directly to Emmanuel. You can even set up recurring grants to align with the campaign's three-year timeline so your giving is automatic and consistent.

Can I keep adding money to my DAF after I open it?

Absolutely! A DAF is an ongoing account — you can make unlimited additional contributions at any time. Each new contribution earns its own tax deduction in that tax year. You can also mix asset types: start with cash, then add appreciated stock or other assets later. Many families contribute annually or whenever it makes financial sense, all while scheduling recurring grants to Emmanuel throughout the campaign.

Take the Next Step

Ready to Open a DAF?

Choose a provider that fits your needs. Here are some popular options.

National Christian Foundation

Faith-driven giving with personalized guidance. Great for complex assets and families who want a Kingdom-focused partner.

Min: ~$5,000

Fidelity Charitable

The largest DAF provider in the U.S. No minimum to open, robust online tools, and a wide range of investment options.

Min: $0

Schwab Charitable

Seamless integration with Schwab brokerage accounts. Easy stock transfers and competitive fees for growing portfolios.