What is a Donor-Advised Fund (DAF)?

Generally, a donor-advised fund (DAF) is a separately identified fund or account that is maintained and operated by a section 501(c)(3) organization, which is called a sponsoring organization. Each account is composed of contributions made by individual donors. Once the donor contributes, the organization has legal control over it. However, the donor, or the donor's representative, retains advisory privileges over the distribution of funds and the investment of assets in the account.