This document addresses common myths about donor advised funds (DAFs) and provides facts to counter each myth. It discusses that DAF donors can be contacted directly, that DAF sponsors provide donor information, that DAF grants can be made to any qualified nonprofit selected by the donor, that gift agreements can be created, and that deferred gifts allowing a donor's charitable legacy to continue can be set up through a DAF. The document aims to provide charities with accurate information about engaging with and soliciting donors who use DAFs.

1. DAF Myths & Facts
Ellen Israelson
VP of Philanthropic Services & CMO,
Jewish Communal Fund

2. An effective fundraising
strategy is to solicit donors
based on the tax vehicle
they use, such as Private
Foundations, Trusts and
donor advised funds (DAFs).
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Myth #1:

3. Fact #1:
Remember that People give to
People. You need to reach out
to the individual, not the
vehicle. Use major gifts
campaign strategies/tools.
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4. DAFs never release the
identity or contact
information of their donors.
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Myth #2:

5. Fact #2:
Create records for the fund
holder and capture all of the
donor information provided
by the DAF. Look at the DAF’s
Annual Report.
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6. Fund holders give up
significant control as to
where grants are directed, and
the DAF sponsor promotes
charities it favors.
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Myth #3:

7. Fact #3:
DAFs may issue grants to any
qualified 501(c)(3) Public
Charity. A grant may not be
made if there is an exchange of
goods and services.
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8. DAF fund holders cannot
sign gift agreements.
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Myth #4:

9. Fact #4:
The DAF sponsor will work
with you to create an
agreement that works for the
charity, protects the donor, and
meets the legal requirements.
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10. DAFS cannot continue your
charitable legacy because
the sponsor, not your heirs or
your favorite charity, takes the
residual assets in the fund.
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Myth #5:

11. Fact #5:
Research the policies of the
DAF used by your donor, and
reach out to the staff re: how
to execute a deferred gift to
your charity.
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12. Questions
For more information, please contact
Ellen Israelson,
VP of Philanthropic Services & CMO
at (212) 752-8277 or ellen@jcfny.org.
Visit our website at jcfny.org.
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