Donor Advised Fund Succession Plan

A Donor Advised Fund is a centralized charitable account that enables charitably-inclined individuals, families, and businesses to make tax-deductible charitable donations (in the United States) of cash, publicly-traded stock, and in some cases certain illiquid assets to a public charity that sponsors a DAF program. These types of accounts have become very popular and offer several tax and planning benefits.

An important part of a DAF owner’s estate plan and charitable legacy is deciding how to direct the DAF upon their death. These directions are known as a ‘Donor Advised Fund (DAF) Succession Plan’ and involve informing the DAF sponsor about how to distribute the remaining balance in the DAF upon the owner’s (or owners’) passing. 

The exact options available to a DAF owner vary and are determined by the DAF sponsor. The most common options related to designating a non-profit, such as the IEEE Foundation, include:

• Naming the IEEE Foundation as successor advisor to the DAF
• Naming the IEEE Foundation as full or partial beneficiary of the DAF
• Endowing the DAF to issue grants to the IEEE Foundation in perpetuity

Including the IEEE Foundation in your DAF Succession Plan is simple. Contact your DAF sponsor, request the paperwork to find out what options are available to you, fill it out, and send it in.