Give Smart
Donor-Advised Funds and Workplace Giving, Explained
Two of the most common ways people give beyond writing a check. One is a charitable account you control; the other runs through your paycheck.
What a donor-advised fund is
A donor-advised fund (DAF) is like a charitable savings account. You give cash, stock or other assets to a sponsoring organization, which is a public charity (often a community foundation or the charitable arm of an investment firm). The money belongs to the sponsor from then on, but you can recommend grants to qualified charities, now or over many years.
Pros and cons
| Pros | Cons |
|---|---|
| Itemizers deduct in the year they give to the DAF | Gifts are irrevocable; you advise, the sponsor decides |
| Easy way to give appreciated stock | Sponsors charge fees, and investment returns aren't guaranteed |
| One receipt instead of many | Money can sit for years instead of reaching charities |
| You can give anonymously | Doesn't count for the 2026 non-itemizer deduction |
Rules to know
- You can't use DAF grants to pay for things that benefit you, such as gala tickets or school tuition, or to fulfill some personal pledges. Check your sponsor's policies.
- Qualified charitable distributions from an IRA can't go to a DAF.
- Gifts to DAFs don't count toward the new 2026 deduction for non-itemizers.
- Some itemizers use a DAF to "bunch" several years of giving into one year, given the new 0.5%-of-AGI floor. Talk to a tax professional first. (See 2026 deduction rules.)
Use it, don't park it. If you open a DAF, set a habit: recommend grants every year so the money goes to work.
Workplace giving
Many employers let you give through payroll deduction, often as part of an annual campaign. Federal employees and retirees can give through the Combined Federal Campaign (CFC), and many states and cities run similar campaigns for public employees.
- It's easy to budget: small amounts every paycheck.
- Records: keep your pay stubs or W-2 plus the pledge card showing the charity's name. For a single deduction of $250 or more, the pledge card should state that you received no goods or services.
- Payroll gifts are cash gifts, so they can count toward the 2026 non-itemizer deduction when they go to qualifying charities.
Don't leave a match on the table
Many companies match employees' charitable gifts, and some give grants to charities where employees volunteer a certain number of hours ("dollars for doers"). Ask HR for the program rules, submit your match requests before the deadline, and log volunteer hours in the Volunteer Hours Log so you have them ready.
Questions people ask
What is a donor-advised fund?
A charitable account held by a public charity called a sponsor. You give to it, get any tax deduction in that year if you itemize, and recommend grants to charities over time. The gift is irrevocable.
Do gifts to a donor-advised fund count for the new 2026 non-itemizer deduction?
No. The deduction of up to $1,000 ($2,000 joint) for non-itemizers excludes gifts to donor-advised funds.
How do I find out if my employer matches donations?
Ask HR or check your benefits portal. Many employers match employee gifts, sometimes dollar for dollar, up to an annual limit, and some match volunteer hours with grants.
Sources
This is general information, not legal or tax advice. Rules change and situations differ; check the sources above or ask a tax professional before you rely on a specific number.