Make the Most of Your Donor Advised Fund

November 2025 – Generosity CORNER – Many people establish a Donor Advised Fund (DAF) at the DeKalb County Community Foundation to simplify their giving, stay organized, and engage the next generation in philanthropy. For some families, 2025 is the year their DAF will play an even greater role in aligning charitable goals with changing tax laws. Even families not directly impacted by these changes are recognizing the flexibility and abundance of ways a DAF can serve their giving.

Here are a few ideas to consider:

1. Evaluate “bunching” in 2025
   If you itemize deductions on your income tax return, you may know that changes are coming in 2026 when both a floor and a cap on itemized charitable deductions are scheduled to take effect. This makes 2025 a unique opportunity to “front-load” or “bunch” charitable contributions into your DAF before the new rules begin. By making a larger contribution this year—perhaps representing two or three years of anticipated giving—you can maximize your deduction under the current laws while continuing to recommend grants to your favorite causes in future years.
2. Organize your giving
   Your DAF at the Community Foundation serves as a convenient hub to organize your charitable giving. You can make tax-deductible contributions of cash or appreciated stock and then recommend grants to organizations you care about over time. Consider making your DAF the center of your charitable activity to simplify recordkeeping and track your annual giving in one place.
3. Adopt a portfolio approach
   Alongside your DAF, you may wish to establish a Designated Fund or Field of Interest Fund to expand your charitable portfolio. A Designated Fund supports a specific charity for the long term, while a Field of Interest Fund focuses on an area of community need, guided by the Community Foundation’s deep local knowledge. Donors age 70½ and older can also direct Qualified Charitable Distributions (QCDs) from an IRA to a Field of Interest or Designated Fund, reducing taxable income while supporting meaningful causes.
4. Establish a legacy
   Your charitable funds can also be part of your estate plan. Many donors name their DAF or other Community Foundation Funds as beneficiaries in a will, trust, or retirement account. Retirement assets, such as traditional IRAs, can be especially tax-efficient gifts because they bypass both income and estate tax when directed to a charitable fund.

As you think about your giving in 2025 and beyond, remember that the Community Foundation team is here to help. Whether you are exploring bunching strategies, creating complementary funds, or planning your charitable legacy, we are honored to work alongside you to ensure your generosity continues to make a lasting difference in DeKalb County.

To learn more or begin the conversation, contact Executive Director Dan Templin at 815-748-5383 or dan@dekalbccf.org.

Philanthropy comes in many forms, and every act of generosity makes a difference. In these Generosity CORNER articles, we’ll share ideas for giving, smart strategies for maximizing your charitable impact, and tips on tax-wise giving, legacy planning, and family philanthropy. Whether you’re a charitable estate planning advisor, a longtime donor, or just beginning your giving journey, this space is for you. Inform and inspire!

Together, we can make a lasting difference—one generous act at a time!  Learn more about Generosity Across Generations.