Individuals and families are using donor-advised funds (DAF) to manage their charitable bequests—called legacy giving—because they provide a simple, tax-efficient, and adaptable means of extending the life span of their philanthropy. A DAF is a charitable account that enables you to initiate, invest, and distribute charitable gifts both now and beyond your lifetime.
A Tool for Legacy Giving
Simple. Let the DAF automatically distribute assets to charities per your instructions or pass the DAF stewardship on to successors—leaving loved ones with a flexible giving tool that requires no administrative work.
Tax-efficient. Bequests to a DAF are eligible for an estate tax charitable deduction and may reduce applicable state taxes, which together could result in significant tax savings. Additionally, contributions of long-term appreciated assets to a DAF are not subject to income tax or capital gains tax, leaving the full value of the contributed asset for the DAF.
Adaptable. As your charitable goals change, you can easily modify a DAF’s charitable beneficiaries or successor-advisors without the administrative burden and cost of revising an estate plan with your attorney.
Flexible Succession Planning
A successful plan involves defining your legacy, considering a life span for your philanthropy, and planning for transitions. DAF succession plans typically call for the assets to be distributed to your favorite charities or for the account privileges to be passed on to others. However, you can elect to combine these options by assigning percentages of the account to each strategy. For example, you may want to distribute a portion of the account to create new accounts managed by your children and distribute the remaining funds to your designated charities.
The flexibility of a DAF enables you to select one or a combination of these four options:
*A $10,000 minimum account balance is required to activate a paced distribution legacy plan.
Complement Your Estate Plans
A DAF’s adaptability complements your estate and financial accounts, saving you and your heirs time. For example, if you have multiple accounts with charitable beneficiaries named, you would be tasked with keeping the beneficiary information correct with each account provider. However, by naming your DAF as the beneficiary to your various financial accounts, you can easily maintain your charitable legacy plan solely within the DAF.
Consider naming your DAF as a beneficiary on wills, individual retirement accounts, nonretirement accounts, life insurance policies, and charitable trusts. Follow the procedures of the account administrator to make beneficiary changes using this information:
| Legal Entity Name | T. Rowe Price Charitable Do not use your DAF's name |
| Tax Identification Number | 31-1709466 In lieu of Social Security Number |
| Date of Incorporation | 5/3/2000 In lieu of birth date |
| Street Address | 1307 Point Street Baltimore, Maryland 21231 |
| Phone Number | 800-690-0438 |
Growing and Giving Together
This material is provided for general and educational purposes only and is not intended to provide legal, tax, or investment advice. This material does not provide recommendations concerning investments, investment strategies, or account types; it is not individualized to the needs of any specific investor and is not intended to suggest that any particular investment action is appropriate for you, nor is it intended to serve as a primary basis for investment decision-making.
T. Rowe Price Charitable is an independent, nonprofit corporation and donor-advised fund founded by T. Rowe Price to assist individuals with planning and managing their charitable giving.
© 2024 T. Rowe Price Charitable. All Rights Reserved. T. ROWE PRICE is a trademark of T. Rowe Price Group, Inc. and is used under license.
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