Do you have a Donor Advised Fund (DAF)? Today, billions of dollars that are sitting in DAFs and community foundations could be used to help COVID-impacted nonprofits in their efforts to take care of our families, our communities, and our environment. Recently, we learned about the #HalfMyDAF challenge, which is a unique program going on between now and the end of September that will give up to 150 non-profits the opportunity to receive matching grants – a total of $1.4 million in additional funding. This is a great opportunity to give back to your community, and your advisors are here to help you achieve your charitable goals. Here is what you need to know to participate.
What is a Donor Advised Fund?
In the United States, a donor-advised fund is a charitable giving vehicle administered by a public charity created to manage charitable donations on behalf of organizations, families, or individuals.[1]
What is #HalfMyDAF?
#HalfMyDAFis a movement that aims to spark a boost in DAF grants, particularly in response to the impact of the COVID-19 outbreak on nonprofits that are now struggling to find funding. The concept is that a donor would agree to pledge half of the DAF to the program before September 30, 2020, and in return, up to 150 non-profits would be selected at random to receive grants up to $25,000 each.
Why was it set up?
Today, nonprofits are being asked to work harder than ever. Yet funding is drying up over uncertainties created by COVID-19. At the same time, over $120 billion sits unused in the more than 700,000 national and community foundation-held DAFs across the country. Even before the crisis, we were surprised by this funding blockage. #HalfMyDaf aims to help move these parked charitable dollars by encouraging people with DAFs to make grants now, so that non-profits can do their jobs.[2]
What is the process to participate?
Here’s how the program works:
- A donor must pledge to half the balance of their DAF (as of May 5 2020 balance) by Sept 30, 2020
- When the Donor makes a gift out, they must submit an official DAF distribution confirmation and a few additional pieces of info about the organization here.
- They do not match every grant, but rather from the submitted organizations, they’ll pick at random, and match at least 150 grants. The first match happened on July 15th, but on September 30th, they’ll select at least 100 more nonprofits to receive matching gifts of up to $10,000— and four more for $25,000— until they have granted a total of $1.4 million.
- Since Mid-May, they began posting names of the #HalfMyDAF Heroes as well as the nonprofits supported. (They won’t connect Donor name with the amount given. And Donors can always choose to remain anonymous. Some of our clients have reported that the organizations they submitted received grants.)
Want to learn more? Visit HalfMyDAF.com and Contact your advisor to start the conversation and to see if you qualify.
Sources:
[1]https://en.wikipedia.org/wiki/Donor-advised_fund
[2]https://www.halfmydaf.com/frequently-asked-questions
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