Strategic Giving: Using Your Donor-Advised Fund (DAF) to Support Neurological Research
A Donor-Advised Fund (DAF) is often described as a “charitable savings account.” When you set up a DAF at a community foundation or financial institution, you receive an immediate tax deduction and can recommend grants from the fund to your favorite charities—like Barrow Neurological Foundation—each year.
For donors focused on neuroscience, a DAF offers a powerful way to manage philanthropic capital while ensuring a steady stream of support for research into neurological conditions such as Alzheimer’s, Parkinson’s, ALS, brain cancer, epilepsy, TBI, and more.
Why a DAF is the “Smart” Vehicle for Neuroscience Giving
Donors choose DAFs for their unique combination of tax efficiency and flexibility. When you donate to Barrow through a DAF, you bypass the administrative burdens of a private foundation while maintaining significant control over your legacy.
Common ways DAFs are used include:
- As a tax-planning vehicle: receive an income tax deduction for the year(s) of DAF funding and make grants over time
- Selling complicated assets in a tax-advantaged manner
- Accounting for charitable contributions
- Teaching philanthropy to future generations
DAF vs. Private Foundation: At A Glance
| Feature | Donor-Advised Fund (DAF) | Private Foundation |
| Tax Deduction | Up to 60% of adjusted gross income (AGI)—Cash | Up to 30% of AGI—Cash |
| Start-Up Cost | Typically $0 | Legal/admin fees |
| Privacy | Grants can be anonymous | Public record of grants |
| Speed | Set up in minutes | Can take months |
How to Recommend a Grant to Barrow
If you already have a DAF with a community organization or a financial institution like Fidelity Charitable, Schwab Charitable, or BNY Mellon, supporting Barrow is a simple three-step process:
- Log In: Access your DAF sponsor’s online portal.
- Search for Barrow: Enter “Barrow Neurological Foundation” or our Tax ID #: 86-0174371.
- Recommend Amount: Designate the grant amount and specify if you want it to support “Greatest Need” or a specific area like the “Ivy Brain Tumor Center.”
The “Bunching” Strategy for Higher Tax Savings
One of the most effective strategies for DAFs is “bunching.” By contributing several years’ worth of donations into a DAF in a single high-income year, you can surpass the standard deduction threshold, maximizing your tax savings while providing Barrow with a “reserve” of funds to draw from in future years.
Frequently Asked Questions for DAF Donors
Can I use my DAF to pay for a gala ticket or auction item?
No. IRS regulations prohibit using DAF grants for any purpose that provides a “more than incidental” benefit to the donor, such as event tickets or memberships with tangible benefits.
Are DAF grants to Barrow anonymous?
They can be. You can recommend grants anonymously through your DAF sponsor, or you can choose to have your name and address shared with us so we can acknowledge your gift.
Is there a minimum grant amount?
Barrow accepts DAF grants of any size, though your DAF sponsor (e.g., Fidelity) may have their own minimum grant requirements (usually $50 or $100).
Ready to make an impact? Visit our technical DAF guide and use our DAF Direct tool at barrow.mygiftlegacy.org to initiate your gift today
