The Penn Donor Advised Fund (Penn DAF) is an efficient and satisfying way to support the University and other charities and can be an attractive alternative to a private foundation, being both more cost-effective and tax-advantageous. The Penn DAF provides a convenient way to make a gift now, and lock in a charitable tax deduction when the gift is made, while deferring the decision of where to designate support until a later date.
A donor can establish a Penn DAF account with a gift of $50,000. Various assets can be used to fund your Penn DAF account. Cash and publicly-traded securities can easily be transferred into the account. Other assets, such as real estate or other financial instruments, may also (upon review and approval) be used to fund an account. At least 50% of the gift must be designated over time to University programs, with the remaining balance available to other charitable organizations. The donor has the option to make additional contributions of $10,000 or more whenever they wish. In return for their gift, the donor is eligible for a tax deduction for the full value in the year the gift is made, subject to IRS guidelines.
Once the Penn DAF is established, the donor may recommend charitable grants to Penn and to other charities. At least 5% of the DAF must be distributed annually. Unlimited grant recommendations can be made each quarter with a minimum distribution amount of $500 per grant. Upon termination of the DAF, the donor has the option to appoint family members to continue the fund for one additional generation.