Would you rather give $50 to your favorite charity or pay that $50 in government taxes? Hands down, most of us would say the latter. Cue: donor-advised fund.
Think of a donor-advised fund (DAF) like your own bank account for charity. It keeps all your giving records really clear and gives you a tax break anytime you transfer money into your DAF. Plus, you can get creative and contribute non-cash assets into your DAF, that you can then give to your favorite charity or invest in an impact driven company.
Faith Driven Donor-Advised Fund (DAF) Sponsoring Organizations
Where can you open your own charity bank account? Glad you asked! You can open one at a “Sponsoring Organization” that helps maintain your account. Here are a few popular ones used by members of the Faith Driven community.
National Christian Foundation
Founded in 1982 – US (Headquarters in Alpharetta, GA)
National Christian Foundation is a US non-profit organization that helps donors give more wisely and tax-efficiently to support their favorite charitable causes. NCF is a leader in accepting non-cash assets, and is the nation's largest provider of donor-advised funds focused primarily on Christian givers. Since 1982, donors at NCF have mobilized more than $16 billion for 71,000 churches, ministries, and charities.
Best Suited for: A US-based giver 1) focused on giving to faith-based organizations and 2) who wants personal help and advice from regional offices equipped to intimately serve givers.
The Signatry
Founded in 2000 – US (Headquarters in Overland Park, KS)
As a donor-advised fund sponsor, The Signatry administers the accounts through which people give. The Signatry has facilitated more than $4 billion in transformational grants for nonprofits around the world.
Best Suited for: A US-based giver looking for help with family legacy, succession planning, and donor-advised funds.
WaterStone
Founded in 1980 – US (Headquarters in Colorado Springs, CO)
WaterStone is a Christian foundation that comes alongside givers, advisors and ministries to provide trusted counsel and innovative giving strategies. WaterStone’s specialty is working with business owners and stewards of family wealth to unlock the giving potential of their non-cash assets like real estate, business interests, oil and gas and agricultural commodities.
Best Suited for: A US-based giver looking to steward a donor-advised fund of nontraditional assets.
Charity Vest
Founded in 2019 – US
Charityvest is a personal charitable giving fund that allows individuals to donate to US nonprofits from one tax-deductible account. Its online charitable giving platform enables anyone to create a donor-advised fund or charitable giving account at any amount of giving.
Best Suited for: A US-based giver who wishes to create a donor-advised fund of any amount (great if you’re starting out small!) and who doesn’t require in-depth advisory services to manage it.
TrustBridge Global
Founded in 2016 – Non-US (Headquarters in Bern, Switzerland)
TrustBridge Global Foundation is a foundation that professionally manages and deploys charitable giving to all corners of the world. Current members of the TrustBridge Global Network collectively comprise over $8 billion in assets representing more than 50,000 donors sending over $2 billion a year to 70,000 charities in over 85 countries on 6 continents. TrustBridge Global serves non-US investors and givers.
Best Suited for: A giver based outside of the United States who wishes to create a donor-advised fund and/or use charitable capital from their DAF to make impact driven investments and grants.
Impact Investing via a Donor-Advised Fund
Did you know that a DAF can be used not just for grantmaking, but also impact investments? Many Faith Driven Investors in our community have used their DAF to make an investment in a favorite for-profit faith driven company that has a strong impact.
The best part? If that company generates a positive return, those earnings go back into your DAF – which means more capital to donate to your favorite charity or to reinvest in other impact investments. Here are a few organizations that help facilitate this type of DAF impact investing:
Impact Foundation
Founded in 2015 – US (Headquarters in Lenexa, KS)
Impact Foundation is a 501(c)(3) public charity that allows families to recommend custom impact investments via their DAF. Through 2022, Impact Foundation donors/investors have deployed more than $382 million for impact. Impact Foundation serves US-based investors and givers.
Best Suited for: A US-based giver who wants to make custom impact investments into direct companies (including faith driven companies) from their existing donor-advised fund.
TrustBridge Global
Founded in 2016 – Non-US (Headquarters in Bern, Switzerland)
In addition to housing charitable funds, TrustBridge Global Foundation works in partnership with Impact Foundation to facilitate custom impact investments via their DAF for non-US investors and givers.
Best Suited for: A giver based outside of the United States who wishes to create a donor-advised fund and/or use charitable capital from their DAF to make impact driven investments and grants.
National Christian Foundation
Founded in 1982 – US (Headquarters in Alpharetta, GA)
In addition to existing as a sponsoring organization that hosts donor-advised funds, National Christian Foundation (NCF) also offers curated Impact Investment Pools that givers can invest into via their DAF.
Best Suited for: A US-based giver 1) focused on giving to faith-based organizations and 2) who wants personal help and advice from regional offices equipped to intimately serve givers..