Donor Advised Funds

Tax Savings

How do I use my shares to reduce my taxes and give to charities?

Create a Donor Advised Fund with your shares and reduce your taxable income by the value of your shares. In the future, make cash grants from your fund to charities of your choosing.

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Reduce Your Taxes

For every dollar's worth of shares you contribute, you can subtract a dollar from your taxable income - see example below

Give to Your Charities

Once your Donor Advised Fund is set up, direct cash grants to charities of your choosing over time

Easy to Set Up

Collective makes creating your Collective Donor Advised Fund fast and simple

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Talk to a Collective Liquidity representative

Our representative is happy to answer all your questions.

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What is a Donor Advised Fund?

A Collective donor-advised fund (DAF) is a charitable investment account you create to support the charitable organizations you care about. You exchange some of your shares into the Collective Exchange Fund in return for a limited partnership interest in the Exchange Fund of equal value. Then you contribute that partnership interest into your DAF. You can take an immediate tax deduction on the full value of the exchanged shares. Over time, the value of the partnership interest in your DAF grows tax free while you direct grants to the charities you select.

Donor Advised Fund Terms

  • Contributions to DAFs are an irrevocable commitment to charity; the assets in a DAF cannot be returned to the donor
  • Grants from the DAF can only be made to IRS-qualified public charities
  • Donors request grants to their charities but the DAF administrator must approve each request
  • Though grants of Exchange Fund partnership interests can be made immediately to the charities you select, cash grants can only be made after the first anniversary of the DAFs formation
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How Collective Donor Advised Funds Work

Create Your DAF

Exchange shares to receive an Exchange Fund limited partnership interest. Then contribute that partnership interest into your Donor-Advised Fund. No capital gains tax is triggered by either the exchange or the contribution to your DAF.


For example, if you hold stock options on $100,000 worth of shares, you exchange those shares for a $100,000 Exchange Fund limited partnership interest. Create your DAF by contributing that partnership interest into the DAF. Your DAF accounts starting balance will be $100,000.

Take Your Tax Deduction

Starting in the year you create your DAF, you can reduce your taxable income by up to 30% every year until you have written off the full value of your shares.


In our example, if your annual taxable income is $200,000, then you could write off $60,000 in income in the first year and $40,000 in the second year. Depending on your tax rate, that could reduce your tax bill by $42,000. (That's almost as much as you might net after taxes and fees from just selling your shares and giving nothing to charity.)

Start Donating

Over time, direct grants to the charities you care about while the value of your Exchange Fund partnership interest grows tax-free in you DAF.


In our example, your DAF account has a starting balance of $100,000. A year after you started your DAF, the partnership interest may have appreciated to $120,000. You might then direct a cash grant of $30,000 to a local homeless shelter, reducing your DAF balance to $90,000. In year four, your DAF may have appreciated to $140,000. You might make direct a $20,000 grant to a charitable organization addressing climate change, reducing your DAF balance to $120,000.

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