Perspective

Donor-advised funds: flexible, effective giving


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 Contributions made into a DAF can’t be withdrawn.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.

This article is issued by Cazenove Capital which is part of the Schroders Group and a trading name of Schroder & Co. Limited, 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. 

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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.

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