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A Donor-Advised Fund (DAF) allow donors to make charitable contributions in the form of an investment while receiving a tax deduction. With a DAF, you can recommend grants to most IRS-qualified public charities, allowing you to choose where your donation goes. Our public charity manages donations on behalf of any individual, family, or organization.
How it Works
Step 1. Make a tax-deductible donation: You can contribute cash, stocks, bonds, and non-publicly traded assets (such as private business interests, cryptocurrency, and private company stock), among other assets, to a DAF and likely will be eligible to receive an immediate tax deduction when you do. Once you donate these funds, they can’t be returned or used for any other purpose, as this is an irrevocable commitment.
Step 2. Grow your donation: Even if you don’t choose charities to support right away, your investment can grow tax-free, which can increase your charitable contribution over time. Typically, sponsoring organizations have a variety of investment options from which to choose, so you can pick an investment strategy for your donation when you’re ready.
Step 3. Choose a charity to support: If you didn’t do so at the time of your contribution, you can choose an IRS-qualified public charity to support. Colored People’s Trust is in charge of conducting due diligence to make sure that the funds you grant to a specific charity are used for charitable purposes.