EarthShare CEO Brad Leibov sat down with Matthew Monahan from Ma Earth to discuss Donor Advised Funds (DAFs) and the urgent need for DAF account holders to move their money on a regular basis for it to have a positive influence on the world.
What Is a Donor Advised Fund?
Even though the Donor Advised Fund (DAF) is a philanthropic tool that is dramatically growing in popularity, it’s not yet widely known to the public, so let’s start there: what is a DAF?
A Donor Advised Fund is a giving fund that allows the donor to contribute to an account designed specifically for charitable purposes. When the donor adds money to their account, they receive an immediate tax deduction, even if the donation hasn’t been designated to go to a specific charity. Depending on the DAF provider, donors can then invest the money in their DAF to grow their donatable dollars and have an even bigger impact.
To learn more about the ins-and-outs of DAFs, you can check out EarthShare’s beginner-friendly breakdown.
The Importance of Making Moves
Stats show that of the more than $250 billion currently sitting in DAF accounts, less than 5% is distributed to nonprofit organizations every year. And while one of the biggest perks of DAFs is that the donor has the flexibility to choose when and where money is distributed, the most important thing is that the money is, in fact, distributed. Money sitting in accounts (especially if those accounts are inactive) isn’t helping anyone. It’s time to make money move.
Tune in to learn more!
