PERSPECTIVE3-5 min to read

Donor-advised funds: flexible, effective giving

Philanthropists are turning to donor-advised funds as a convenient, swift and private way to give. They still benefit from tax breaks and get to choose the causes they support, as this video explains.


It is not necessary to set up a charity or other formal structure through which to give. Effective giving can often be achieved more conveniently – and with the same level of tax benefit and direction – via another structure, known as a donor-advised fund (DAF).

DAFs often allow for faster and more effective giving, with the same level of tax benefit, that charities and formal structures can offer.

As a result, philanthropists are turning to DAFs as a convenient, swift and private way to give.

How do Donor-Advised Funds work?

DAFs are operated by a recognised charitable organisation in partnership with a wealth manager like Cazenove Capital. Contributions made into a DAF can’t be withdrawn. But the donor, acting as adviser to the fund, can choose which charities should benefit from any distributions.

For more information, watch this video or get in touch with your Cazenove Capital contact.

Originally published 21 November 2021.

Issued in the Channel Islands by Cazenove Capital which is part of the Schroders Group and is a trading name of Schroders (C.I.) Limited, licensed and regulated by the Guernsey Financial Services Commission for banking and investment business; and regulated by the Jersey Financial Services Commission. Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested. This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements. All data contained within this document is sourced from Cazenove Capital unless otherwise stated.



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Cazenove Capital is a trading name of Schroders (C.I.) Ltd which is licensed under the Banking Supervision (Bailiwick of Guernsey) Law 2020 and the Protection of Investors (Bailiwick of Guernsey) Law 2020, as amended in the conduct of banking and investment business. Registered address at Regency Court, Glategny Esplanade, St. Peter Port, Guernsey GY1 3UF, (No.24546) . Schroders (C.I.) Limited, Jersey Branch is regulated by the Jersey Financial Services Commission in the conduct of investment business. Registered address at 40 Esplanade, St. Helier, Jersey JE2 3QB, (No.31076).

The value of your investments and the income received from them can fall as well as rise. You may not get back the amount you invested.