Donor-advised funds

The donor-advised fund sponsors that partner with UBS are leading national organizations, open to supporting a broad range of charitable causes. They are not limited by region, religion, or community, and will generally approve grants to any charity properly registered with the IRS. This means you have the freedom to support the organizations and missions that matter most to you.

There are no IRS requirements for minimum grant amounts or annual distributions from your DAF account. The national DAF sponsors we work with may set only minimal grant requirements to keep your account active, giving you maximum flexibility. You can recommend grants to one or many qualified charities, all at once or over time, and tailor your giving to your personal philanthropic vision.

With a donor-advised fund, you can make a meaningful impact on your own schedule, supporting the causes you care about whenever you choose.

When you contribute assets to your DAF, you typically can take the tax deduction right away, even though the money might not be distributed to a charity until much later. Contributions made to donor-advised funds are tax-deductible in the same year they’re made, and assets in these accounts can grow tax-free.

The assets you contribute to a donor-advised fund permanently leave your estate, which may support broader estate and wealth planning goals.

A donor-advised fund can provide an extra layer of privacy for your charitable giving. Because the sponsoring organization reports the grants on its own tax return, your personal information does not need to be disclosed to the recipient charity. Many families with private foundations also maintain a DAF to make gifts discreetly, allowing them to support causes they care about while preserving their anonymity.

Some families and individuals might prefer to make charitable donations by setting up a private foundation, which is a separate legal entity with its own articles of incorporation, bylaws and board of trustees. Unlike donor-advised funds, private foundations are required to file annual tax returns, disclose the name of donor and distribute at least 5% of the previous year’s average assets each year.

Private foundations offer exceptional flexibility and control in philanthropic giving. They can provide scholarships and fellowships directly to individuals, make grants to families or individuals facing hardships, and even operate their own charitable programs. Many families choose to use both a private foundation and a donor-advised fund together, leveraging the strengths of each to maximize their impact and tailor their giving to a wide range of causes. By combining these vehicles, you can enjoy greater versatility and privacy in your charitable strategy, supporting your vision for philanthropy now and for generations to come.