Account type
Donor-advised funds: how they work and how sponsors compare
Sponsor figures checked on
A donor-advised fund (DAF) is a giving account, not a retirement or investing account. You give cash or investments to a charity that runs the fund, take the tax deduction when you give, and then recommend grants to other charities over time. This page covers the basics and lines up six sponsors.
Educational, not financial or tax advice
This page explains how DAFs work in general. It isn’t a recommendation to open or fund one. Charitable deduction rules depend on your whole tax return, so check the IRS sources below and talk to a tax professional before a large gift. Fees and rules change, so confirm details with the sponsor.
What a donor-advised fund is
The IRS describes a DAF as a separately identified fund or account run by a 501(c)(3) organization called a sponsoring organization. Once you contribute, the sponsor has legal control of the money. You keep advisory privileges: you can recommend how it’s invested and which charities get grants. (IRS: Donor-advised funds)
How the tax deduction works, in short
- You deduct when you give to the fund, not when it grants. To deduct a DAF contribution you need a contemporaneous written acknowledgment from the sponsor that it has exclusive legal control over what you gave. (IRS Publication 526)
- It’s irrevocable. The money belongs to the sponsor once you give it, so you can’t take it back or move it into your own accounts. (IRS: Donor-advised funds)
- No personal benefits. A deduction is generally reduced by anything you get back, and the IRS can deny deductions and impose excise taxes when a DAF is used to give donors or their families improper benefits. (Publication 526, IRS: Donor-advised funds)
- AGI limits. Cash given to a “50% limit organization” (which includes publicly supported charities) is limited to 60% of your adjusted gross income. Appreciated property you’ve held more than a year (capital gain property), such as stock, deducted at fair market value is generally limited to 30% of AGI. Anything over the limit can be carried forward for up to five years. Stock held a year or less is generally deductible only up to what you paid for it. (Publication 526)
- You have to itemize. Generally you must itemize on Schedule A to deduct a gift. Starting in 2026, itemizers can deduct only charitable gifts above 0.5% of AGI. The new 2026 deduction for non-itemizers (up to $1,000, or $2,000 filing jointly) generally doesn’t cover gifts to DAFs. (Publication 526, Publication 505 (2026), Publication 6196, Topic no. 506)
Bunching, and who a DAF suits
“Bunching” is a common strategy, not an IRS term: you put several years of planned giving into a DAF in one year so your itemized deductions clear the standard deduction that year, then take the standard deduction in the following years while the DAF makes grants. Whether it helps depends on your numbers.
A DAF tends to suit people who:
- already give regularly and itemize, or would itemize in a bunched year;
- hold stock or funds with large long-term gains they’d rather give than sell;
- want to give now for tax reasons but decide on charities later.
It suits people less if they give small amounts and take the standard deduction, or might need the money back. Community foundations also run DAFs, often focused on a local area; their minimums and fees vary, so check your local one directly.
Sponsor comparison
Six sponsors, listed alphabetically. This is not a ranking and no sponsor pays to be here or to change what’s shown. Every figure comes from the sponsor’s own pages (linked in the last column), read on October 28, 2026. “Not verified” means we didn’t find the figure on an official page, or the sponsor’s pages disagreed. It doesn’t mean it’s zero.
| Sponsor | Minimum to open | Minimum grant | Administrative fees | Investments and their costs | Grant online? | Noncash assets accepted | Worth knowing | Sources and links |
|---|---|---|---|---|---|---|---|---|
| CharityvestApp-based, flat or no fee | $0. The minimum for any contribution, grant or gift is $15. | $15. | $0 opening, maintenance and grant fees, and no fee for bank-account contributions. If you turn on investing: 0.60% a year on the first $500,000, 0.30% on the next $500,000, then lower tiers, with a $100 a year minimum. | Optional investing in Charityvest portfolios and single-asset-class index ETFs. Charityvest says its Core portfolio runs about 0.05%. Its own guide gives two different figures for the ESG option, so we don’t quote one. | Yes, from the online dashboard, once or on a recurring schedule. | Stocks, ETFs and other public securities, cryptocurrency, and complex assets including private stock and real estate. Card contributions can carry a fee. | Charityvest says it may earn revenue from interest on cash balances held in DAF accounts. | |
| DaffyApp-based, flat monthly fee | $0 (no minimum to open). | $18. | Flat monthly membership instead of a percentage: free under a $100 balance, then $3/month (up to $25,000 a year in contributions), $5 (family), $20 (up to $100,000 a year) or $40 (unlimited). Dues come out of your fund balance. 2.9% surcharge on card contributions after the first one up to $1,000. | 17 portfolios, including ESG and crypto options, plus custom portfolios on higher tiers. Daffy charges no asset-management fee; the underlying funds’ expense ratios apply. | Yes, on the web and in its iOS app. | Stock, ETFs, mutual funds and crypto (300+ assets, per Daffy), plus transfers from other DAFs. Private stock on the $20 and $40 tiers, with a liquidation fee. | — | |
| DAFgiving360 (Schwab)Brokerage-affiliated | No minimum for a core account. $100,000 for a professionally managed account. | $50. | 0.60% a year on the first $500,000, 0.30% on the next $500,000, 0.20% on the next $1.5 million, then lower tiers down to 0.10% above $15 million. For core accounts it’s collected inside the investment pools’ expenses. | Core accounts choose among index and actively managed investment pools; pool expenses vary with the underlying funds. Professionally managed accounts ($100,000+) use an approved advisor, whose fee can’t exceed 1% a year. | Yes, online or in the Schwab Mobile app. | Cash and publicly traded stocks, ETFs, mutual funds and bonds. Restricted or private stock, private equity, hedge funds, real estate, crypto and tangible property case by case. | Formerly Schwab Charitable; renamed DAFgiving360 in 2024. | |
| Fidelity CharitableBrokerage-affiliated | $0 for an individual Giving Account. No minimum for later contributions. | $50. | 0.60% a year or $100, whichever is greater, on the first $500,000; 0.30% on the next $500,000; 0.20% on the next $1.5 million; 0.15% on the next $2,499,999. Fidelity says total fees typically come to about 1% of the balance. | Investment pools: asset-allocation, single-asset-class (index and active), sustainable and impact, and a Charitable Legacy Pool. Pool costs are the underlying mutual funds’ expenses and vary by pool. Advisor-managed and DonorFlex options for larger accounts. | Yes, online and in its mobile app. | Cash, publicly traded stock, mutual funds and bonds, privately held business interests, and other assets such as restricted stock, life insurance or cryptocurrency, all subject to review. | Contributed securities are sold with a brokerage commission of 1.2¢ a share (1.7¢ for large-block or thinly traded), which reduces the amount credited. | |
| National Philanthropic TrustIndependent national sponsor | $10,000. Later contributions: not verified, because NPT’s guide says no minimum for liquid assets and its FAQ says $5,000 or more. | $250. | Charitable administrative fee of 0.85% a year on the first $250,000, 0.70% on the next $250,000, 0.60% on the next $500,000, then lower tiers to 0.10% above $10 million. Minimum $17 a month. | Pooled model portfolios (each with its own fund expenses and an advisory fee or trading costs). Accounts of $500,000+ can have a financial advisor propose other investments. | Yes, through its GivingPoint platform. | Public securities, restricted and private stock, real estate, private business interests, cryptocurrency (minimum $25,000) and more, with due diligence and gift-processing fees for illiquid assets. | A one-time fee (greater of $500 or 2% of contributions) applies if the balance drops below 5% of what you put in within 12 months of opening. At least one $250 grant every three years. | |
| Vanguard CharitableBrokerage-affiliated | $25,000. Additional contributions of $5,000 or more. | $500. | 0.60% a year on the first $500,000, 0.30% on the next $500,000, 0.11% on the next $4 million, then lower tiers (schedule effective October 1, 2026). $250 maintenance fee in February if your balance is under $25,000 (accounts open under six months excluded). | A range of Vanguard Charitable investment options across major asset classes. Vanguard Charitable charges no investment fee itself; the underlying funds’ expense ratios apply and vary by option. | Yes, through its online account portal. | Publicly traded stocks, mutual funds, ETFs and bonds. Complex assets such as hedge fund or private equity interests, options, insurance policies and non-public stock case by case. We didn’t find crypto mentioned on its pages. | Each account must make at least one $500 grant every three years. Its March 2026 Policies & Guidelines show 0.12% for the $4 million tier; the fees page shows the newer 0.11%. |
A dash under “Worth knowing” means we didn’t note anything, not that nothing exists. Percentage fees are annual and tiered by balance, so each rate applies only to the slice of the balance in that tier. Fund expense ratios, gift-processing fees for complex assets, and third-party fees from your own broker or exchange aren’t included. Noncash gifts are usually reviewed by the sponsor before they’re accepted.
IRS sources
Checked on October 28, 2026. Publication 526 on irs.gov is the 2025 edition; the 2026 changes come from Publication 505 (2026), Publication 6196 and Topic no. 506. Tax rules change, so look at the IRS for the year you give.
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