Donor-Advised Fund

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

Our approach

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

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 easily make new contributions, select investment objectives, make grant recommendations to the charities of your choice, track your giving, and access statements and tax documentation.

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

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Leveraging donor-advised funds for charitable giving

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Please see important information at the end of this video.

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Donald Greene

National Donor-advised Fund Executive

Bank of America Private Bank

Charitable giving is a critically important part of most of our clients’ lives. They give their time, they give their leadership, and they give their financial resources. Not only looking to affect the causes and the organizations they care most about, but really make the world a better place.

A donor-advised fund, also known as a “DAF,” is a personal charitable giving account that families can use to make the most of their giving.

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● Get an immediate tax deduction

● Decide when to give from the fund

● Choose charities and how much to give

They can make irrevocable gifts into their account and secure a tax deduction for the timing of that gift, but then determine what the right timing is for you to spend those dollars out over time. Which charities, which causes, and in what amounts.

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Donate hard assets

So clients contribute all different types of assets including complex and hard assets such as real estate or property without having to liquidate or sell them first.

A donor-advised fund allows you to invest your account and potentially grow it over time, giving you more resources to give away. It also gives you the opportunity to align your giving strategies and the values you have to your investment approach.

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Give as a family

DAFs are a wonderful way for families to work together as they do their charitable giving. Have a chance to talk about why they give, what causes they give to, the importance of giving, and making sure that that value becomes one that’s embedded in the family structure and not an independent exercise.

Clients have long-standing relationships with their advisor teams, understand all of the opportunities and planning needs that they’re working towards. What our model allows us to do is work with a dedicated donor-advised fund team and those advisors and clients to make sure that the context for the charitable giving is within that broader spectrum of the goals that they’re after.

The Bank of America Charitable Gift Fund helps clients focus on what’s most important about their charitable giving; making a difference in the world.

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What would you like the power to do?®

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Bank of America® logo

Disclosure:

Recorded on November 17, 2022.

Investing involves risk, including the possible loss of principal. Past performance is no guarantee of future results.

Bank of America, its affiliates, and advisors do not provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.

Asset allocation, diversification and rebalancing do not ensure a profit or protect against loss in declining markets.

Merrill Lynch, Pierce, Fenner & Smith incorporated (also referred to as “MLPF&S” or “Merrill”) makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation (“BofA Corp”). MLPF&S is a registered broker-dealer, registered investment adviser, Member SIPC and a wholly owned subsidiary of BofA Corp.

Trust and fiduciary services are provided by Bank of America Private Bank, a division of Bank of America, N.A., Member FDIC and a wholly owned subsidiary of BofA Corporation.

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.

Investment products:

Are Not FDIC Insured

Are Not Bank Guaranteed

May Lose Value

Bank of America and the Bank of America logo are registered trademarks of Bank of America Corporation.

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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 sustainable, actively-managed portfolios, or passive, all ETF (exchange-traded fund), 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® 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

Strategic Philanthropy

Understand where you can achieve the most impact and learn ways to give beyond traditional grantmaking.

LEARN MORE

Foundations & Grantmaking

Access resources and support throughout all phases of tile foundation life cycle - from inception to implementation to board transitions or termination.

SEE HOW

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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. 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.

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.

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Donor-Advised Fund

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

Open your account

Choose how your funds are invested

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

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

Strategic Philanthropy

Foundations & Grantmaking

Frequently asked questions

How do donor-advised funds work?

What happens to donor-advised fund at death?

Are contributions to donor-advised fund qualifying distributions?

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

Are donor-advised funds taxable?

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