Today is National DAF Day! But if you’re like most people, you may have no clue what a “DAF” is. Don’t worry, you’re not alone! DAFs represent an important tool in your charitable giving toolbox, and we are here to demystify them for you.  

DAF (Donor Advised Fund) Day began in 2024 as a collaboration among nonprofits, DAF providers, and fundraising platforms. The idea is simple but powerful: make DAF giving easier and more accessible, while rallying donors and organizations around a single, coordinated day of support. 

We sat down with Bob Lockwood, Relationship Manager at the National Christian Foundation Northwest, to discuss Donor Advised Funds and why this method of charitable giving is such a great option for many donors. National Christian Foundation is a US non-profit organization that assists donors in donating to charitable causes and is the nation’s largest provider of donor-advised funds focused primarily on Christian donors. 

Medical Teams: Thanks so much for talking with us today, Bob! To start, can you explain exactly what a Donor Advised Fund (DAF) is and how people use it to make charitable gifts? 

Bob Lockwood: Sure thing. I like to describe a DAF as a kind of “charitable checking account” that allows a person to put assets aside that they plan to give while receiving the best possible tax benefit. Let’s say you’re planning to donate $10,000 in the upcoming year. You make one deposit of $10,000 into your DAF account, get one tax receipt for the money that goes into the fund, and then once it’s there, you have complete flexibility to grant it out to organizations you are passionate about. 

While the money is in the DAF, it can be invested in various investment choices and have an opportunity to grow tax free. The investment choices in a DAF generally cover the risk spectrum from conservative to growth – kind of similar to the choices one would have in a 401(k) plan if they’re familiar with those.

Medical Teams: Yes, those comparisons are very helpful! What are some of the benefits of giving through a DAF as opposed to just a direct gift? 

Bob Lockwood: Great question! There are some great benefits to DAF giving: 

• Convenience: Let’s say you support 10 different charitable organizations. If you make 10 individual gifts directly to those orgs, then you will end up with 10 different tax receipts that can become a real headache to keep track of at tax time. With a DAF, you can deposit the full amount that you’d like to distribute, get one tax receipt for that amount from the DAF administrator (NCF, Fidelity, etc.), and then coordinate your grants to those 10 organizations from the DAF account.  

• Flexibility with Timing of Gifts: Imagine that you’re getting to the end of the year and your accountant tells you that you need to donate $100K to charitable causes to help with your tax write-offs. Rather than having to make hasty decisions about where to gift those funds before the end of the calendar year, you can deposit that $100K into your DAF, get your tax deduction, and then take time to thoughtfully consider where you would like to invest those funds. This allows donors to be more intentional about their giving choices. Taking this time also allows the initial investment to grow, ultimately giving the donor more funds to donate. 

• Ability to Give Non-Cash Gifts: DAFs allow donors to use other valuable assets for their charitable giving, like appreciated publicly traded stocks that they’ve held over a year. If an individual were to sell the stock and donate the proceeds, they would have to pay capital gains tax. But if they donate the stock to their DAF, and then the DAF administrator sells the stock, they can avoid that capital gains tax because the DAF administrators have nonprofit status. Depending on the situation, this can  also be true of contributions like real estate or  business interests. With all these examples, donors can avoid capital gains taxes so that more of their money goes toward the charitable causes that mean the most to them. 

Medical Teams: What is the process like for setting up a DAF? 

Bob Lockwood: It’s really simple—NCF has an easy process that only takes about 15 minutes. There is no minimum deposit required to set up a DAF with us, and all you have to do is complete an online form. Once it’s established, you can link your accounts and begin depositing funds as you desire.  

Medical Teams: Sounds easy enough! Bob, why is it so important for people to be intentional and proactive about their giving?  

Bob Lockwood: I think it really comes down to the concept of stewardship—God has entrusted everyone with resources, and we are stewards of what he’s given us. We all want to be good stewards—so we allocate those resources based on where he leads us, and where we perceive that we could be of the most help. 

Medical Teams: A 2024 report from The Giving Review showed that only about 17% of U.S. adults are familiar with Donor Advised Funds. Why do you think that is?  

Bob Lockwood: I think there’s probably a general lack of awareness.  There are some estate planning attorneys, CPAs, financial advisors, and ministries that bring DAFs up with their clients and donors.,  But it does seem like unless you anecdotally hear it from someone who has one, how would you know about it? That’s why educational opportunities like DAF Day are so important!  

Medical Teams: According to DAFday.com, 69% of DAF gifts are less than $1,000. This should be encouraging for people who may believe that DAFs are only for wealthy individuals with lots of disposable income, or might be intimidated to start giving, right? 

Bob Lockwood: Absolutely. That really circles back to the idea that any resources that we have been blessed with ultimately belong to God—no matter how large or small the amount. 

“Sometimes people think that they have to wait until they can make a 4 or 5 figure gift, but really, every gift is meaningful and an act of biblical generosity. It’s more about having the mindset of being generous with your resources (financial, time, talents, etc.) rather than the dollar amount”

It makes me think of the biblical story of the widow giving her last 2 copper coins at the temple—Jesus celebrated her gift more than any of the others, because it was the largest sacrifice, comparatively. It’s truly more about the heart behind the gift, and DAFs are a great way to begin practicing stewarding your resources to make an impact that can truly change the lives of others.  

Medical Teams: Bob, thank you so much for sitting down with us today, and for all of this great information!  

To learn more about ways you can support the life-saving work of Medical Teams on DAF Day, or any day of the year, click below! 

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