Donor-advised funds

When developing your charitable giving plan, a donor-advised fund (DAF) may be the right strategy. This approach provides you with a host of benefits, and allows you to determine the ultimate recipient of your donations. Our team's brings guidance and can connect you to the right resources. All in service of helping you maximize your philanthropic impact in a way that makes sense for your overall wealth plan.

Understanding the benefits

DAFs are different than other philanthropic strategies (like a private foundation) in a number of key ways:

  • Implement easily: Our team can set up your DAF account immediately with little to no cost, and with an initial investment requirement of as low as $25,000.
  • Maintain control: You determine the recipient(s) of your donation and recommend grants and investment allocations.
  • Take your time with decision making: With a DAF, you can donate over time without having to decide exactly where that donation will go. This lets you take an income tax charitable deduction now, and direct your giving when you’re ready.
  • Enjoy tax efficiencies: When donating non-marketable assets—such as privately held stock or tangible property—to a DAF, your income-tax deduction is based on the fair market value of those assets. Non-marketable assets donated to a private foundation, on the other hand, are typically limited to the donor’s cost basis —the original value of the assets.
  • Diversify a concentrated portfolio: Our advisors can help you contribute appreciated publicly traded stock to a donor-advised fund in order to reduce your concentrated stock position.

We’re dedicated to making sure that J.P. Morgan’s DAF offering meets our clients’ needs

J.P. Morgan’s Charitable Giving Fund is a donor-advised fund administered by the National Philanthropic Trust, a public charity and the largest independent donor-advised fund administrator in the country.

Choosing the right DAF

Not all DAFs are the same. We can help make sure that your DAF suits your current and future needs. Issues to consider include:

  • What are the DAF’s investment options? These can vary widely, with some organizations offering few, and others providing a broad array.
  • Does the sponsoring organization accept “unique or illiquid” assets? Not all funds will accept the assets that a donor might be well advised to give, such as appreciated stock or real estate.
  • How flexible is the DAF regarding the choice of charitable recipients? You’ll want to understand which charities are on a sponsoring organization’s approved list, and how easily another charity may be added. Possible recipients, and the process for adding charities, can vary greatly among DAFs.
  • Does the DAF have foreign grant expertise? If you want to give to an international charity, there are tax and reporting implications, among others.

J.P. Morgan’s Charitable Giving Fund is a donor-advised fund administered by the National Philanthropic Trust, a public charity and the largest independent donor-advised fund administrator in the country.

Enhancing your foundation with a donor-advised fund

A DAF allows your private foundation to satisfy its annual 5% distribution requirement, donate to nonprofits whose work falls outside of its mission statement, donate to non-U.S. charities and more. Our advisors can help you determine whether a DAF is right for your foundation.

If you’re seeking to simplify your giving strategy, J.P. Morgan can help you evolve your private foundation to a donor-advised fund account. You won’t lose control. You and your family will still have the ability to be advisors through a simple process.    

How one woman improved the environment in Calcutta and Chicago

By donating interests in her private equity firm to her Charitable Giving Fund, she was able to receive a tax deduction before the interests were sold; advise on the timing of the sale; give to charitable recipients in her native Calcutta; donate to a nonprofit in her new city, Chicago.
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  • Donor-advised funds
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