Donor-Advised Fund

Q: How do donor-advised funds work?

Donor-advised funds (DAFs) are accounts that are held at a public charity on behalf of a donor. The donor contributes cash or other assets to his or her DAF and is able to take a tax deduction, up to allowed maximums, in the year of the donation. The donor can advise the charity on grants to be made to qualified charitable organizations using these funds provided the purpose meets the DAF guidelines. The funds in a DAF can also be invested to grow tax-free and donors can continue to make charitable contributions to their DAF until the account is closed.

Q: What happends to donor-advised fund at death?

Upon the death of the donor-advisor(s), control of the remaining funds can be dealt with in one of two ways. If a successor or charitable organization has been designated, that individual or organization can continue recommending grants, in the same way that the founding donor did. If no successor is named, the remaining funds become part of the Bank of America Charitable Gift Fund's (CGF's) General Fund which supports a variety of charitable causes and organizations at the CGF's discretion.

Q: Are contributions to donor-advised fund qualifying distributions?

The Charitable Gift Fund can accept contributions from Individual Retirement Accounts. Please note, however, if the donor is making a current lifetime distribution, i.e. not at death, distributions from an IRA to the donor advised fund do not constitute 'qualified charitable distributions' excludable from the donor's income. This is because federal law specifically excludes donor advised funds (as well as certain other public charities) from being eligible to receive qualifying charitable distributions. Rather, such IRA distribution would be includible in the donor's taxable income and then the donor would need to file for an offsetting charitable deduction. As such, donors should consult their tax and legal advisors to determine whether to proceed in light of their overall tax situation.

Q: How much can I contribute to a donor-advised fund?

There is no limit to the amount of cash or other assets that can be contributed to a donor-advised fund (DAF). There are limits to the tax deductibility of gifts to a DAF, generally offering up to a maximum potential deductibility of 60% of the donor's current year adjusted gross income. Donors should consult their legal and/or tax advisors before making any gifting decisions.

Q: Are donor-advised funds taxable?

Once cash or other assets are gifted to a donor-advised fund, they become the property of the public charity that manages the DAF on the donor's behalf. As a result, these assets and any subsequent interest payments, dividends or capital appreciation are the property of the charitable organization and not taxable to the donor. Investors should consult their legal and/or tax advisors before making any gifting decisions.

The Bank of America Charitable Gift Fund offers a sophisticated and dynamic way to give to the causes that mean the most to you.

< View all Solutions

Our approach

Since 1955, The Bank of America Charitable Gift Fund has been helping donors contribute money to their favorite charities in a tax-efficient, organized, and worry-free way. You can depend on us to help you pursue your philanthropic goals while you support the causes most important to you.

A donor-advised fund allows you to streamline your charitable giving. Your fund will be invested with the potential to grow over time. Our online portal allows you to track your giving, make grant recommendations to the charities of your choice, select investment objectives, and access statements and gift receipts.

Bank of America Charitable Gift Fund benefits:

Receive a current-year income tax deduction for any assets you contribute to your fund
Donate appreciated assets without incurring capital gains taxes
Make grant recommendations now or in the future
Involve your family and build a tradition of family charitable giving
Choose from multiple investment objectives
Manage your charitable giving via our online portal or with your financial advisor

Services

Open your account

Make an irrevocable, tax-deductible contribution to your donor-advised fund
Initial contribution minimum is $25,000. Additional contributions must be $250 or more
You can contribute a wide variety of assets including cash, mutual funds, securities, and non-publically traded assets (i.e. private stock, restricted stock, real estate)

Get Started

Choose how your funds are invested

The Gift Fund offers 15 distinct investment options representing a range of strategic asset allocation models from fixed income to appreciation. For each allocation model, donors may choose either actively or passively managed portfolios.

Make grant recommendations to benefit charities that are important to you.

You decide when to make grant recommendations and how much to grant to the charities of your choice
Streamlined grant recommendations through our secure portal including setting up recurring grants
Receive recognition for your donations or maintain anonymity to protect your privacy
Authorize an unlimited number of individuals to serve as co-advisors to your Fund

Access and manage your gift fund account using our flexible, secure portal

Review your fund balance and transactions
Research grantees using the Guidestar®¹ database of 1.8 million IRS–recognized charitable organizations
Access all account documents
Download useful forms

Connect with a Private Client Advisor

Learn more about the benefits of working with Bank of America Private Bank

Find an advisor

How do donor-advised funds work?

Donor-advised funds (DAFs) are accounts that are held at a public charity on behalf of a donor. The donor contributes cash or other assets to his or her DAF and is able to take a tax deduction, up to allowed maximums, in the year of the donation. The donor can advise the charity on grants to be made to qualified charitable organizations using these funds provided the purpose meets the DAF guidelines. The funds in a DAF can also be invested to grow tax-free and donors can continue to make charitable contributions to their DAF until the account is closed.

What happens to donor-advised fund at death?

Upon the death of the donor-advisor(s), control of the remaining funds can be dealt with in one of two ways. If a successor or charitable organization has been designated, that individual or organization can continue recommending grants, in the same way that the founding donor did. If no successor is named, the remaining funds become part of the Bank of America Charitable Gift Fund’s (CGF’s) General Fund which supports a variety of charitable causes and organizations at the CGF’s discretion.

Are contributions to donor-advised fund qualifying distributions?

The Charitable Gift Fund can accept contributions from Individual Retirement Accounts. However, if the donor is making a current lifetime distribution, i.e. not at death, distributions from an IRA to the donor-advised fund do not constitute qualified charitable distributions excludable from the donor’s income. As federal law specifically excludes donor advised funds (as well as certain other public charities) from being eligible to receive qualifying charitable distributions. Instead, an IRA distribution would be includible in the donor’s taxable income and then the donor would need to file for an offsetting charitable deduction. Donors should consult their tax and legal advisors to determine whether to proceed in light of their overall tax situation.

How much can I contribute to a donor-advised fund?

There is no limit to the amount of cash or other assets that can be contributed to a donor-advised fund (DAF). There are limits to the tax deductibility of gifts to a DAF, generally offering up to a maximum potential deductibility of 60% of the donor’s current year adjusted gross income. Donors should consult their legal and/or tax advisors before making any gifting decisions.

Are donor-advised funds taxable?

Once cash or other assets are gifted to a donor-advised fund, they become the property of the public charity that manages the DAF on the donor’s behalf. As a result, these assets and any subsequent interest payments, dividends or capital appreciation are the property of the charitable organization and not taxable to the donor. Investors should consult their legal and/or tax advisors before making any gifting decisions.

¹Guidestar is not affiliated with Bank of America Corporation or its subsidiaries.

Donor-advised fund management is provided by Bank of America Private Bank, a division of Bank of America, N.A., Member FDIC and a wholly owned subsidiary of Bank of America Corporation (“BofA Corp.”). Trust, fiduciary, and investment management services are provided by wholly owned banking affiliates of BofA Corp., including Bank of America, N.A. and its agents. Brokerage services may be performed by wholly owned brokerage affiliates of BofA Corp., including Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as “MLPF&S” or “Merrill”). Merrill is a registered broker-dealer, a registered investment adviser and Member SIPC.

Related Insights

Charitable vehicles comparison

Selecting the appropriate charitable vehicle

TOP