A DAF works like a “charitable investment account.” You open it through a sponsoring public charity, put in cash, stocks, or other assets, and receive an immediate tax deduction for the amount you give. The money can grow tax-free, and you decide later which charities to support.

Why people love DAFs:

• • Get a tax deduction right away, even if you give to charities over time.
  • Contribute cash, stocks, or even real estate.
  • Assets inside your DAF grow tax-free, so your future gifts may be larger.
  • Simple and flexible, perfect if you’re having a high-income year but want to spread donations out.

Qualified Charitable Distribution (QCD)
A QCD is a tax-smart way for people age 70½ or older to give directly from an IRA to a qualified charity.

Key benefits:

• The money goes straight to charity (you don’t handle it).
• It doesn’t count as taxable income.
• If you’re 73+, it can satisfy all or part of your Required Minimum Distribution (RMD).
• You can donate up to $105,000 per person, per year (2024 limit).

Example: If your RMD is $20,000, you could send $15,000 directly to a charity as a QCD. That $15,000 isn’t taxed, and you only withdraw $5,000 more to finish your RMD.

Quick Comparison

Tip:

• Use a QCD if you’re taking RMDs and want to reduce taxable income right away.
• Use a DAF if you want a deduction this year but prefer to choose charities later.