How to make a bequest to a donor-advised Fund
When most people think about giving, they picture writing a check or donating online. But for those who want their generosity to live on after they’re gone, a bequest is one of the most meaningful ways to give. It’s a promise that the good you’ve started will continue—a chance to build a lasting legacy that carries your values forward.
And when you combine that kind of gift with a donor-advised fund (DAF), you get the best of both worlds: the structure of estate planning and the flexibility to keep giving long after your lifetime.
What is a bequest?
A bequest is a charitable gift left through your will or trust — part of your broader estate planning process. It can be a specific dollar amount, a percentage of your estate, or even assets like real estate, securities, or other property.
Think of it as one final act of generosity. You’re helping the charitable organizations you care about while also creating potential tax savings for your loved ones. Since bequests often reduce your estate tax, they can help preserve more of your estate for the people and causes that matter most.
It’s philanthropy that continues to give, even after you’re gone.
Why pair a bequest with a DAF
A donor-advised fund makes charitable giving simple and adaptable. You can add it directly into your estate plan and decide ahead of time how your charitable dollars should be distributed.
Here’s why it works so well:
- It’s easy to set up. A DAF can be opened with a small initial contribution ($5), and you can add to it anytime.
- It keeps giving. You can name family members or charitable beneficiaries to continue your grants after your lifetime.
- It’s tax-smart. Contributions may qualify for an income tax deduction, and assets can grow tax-free inside the account.
- It offers flexibility. You can change your grant preferences or supported causes as your life evolves.
What’s more, your sponsoring organization manages all the reporting and compliance with the IRS (and distributions), so you can focus on meaning, not mechanics.
How to leave a bequest to your DAF
Creating a charitable bequest is easier than most people expect. Here’s how to make it part of your plan:
1. Clarify your charitable intentions
Who or what changed your life? Those are the charitable causes to write into your plan.
2. Work with your estate planning team Fund
An estate planning attorney can help include your DAF in your will or trust. You’ll typically list your DAF sponsor (for example, GoFundMe Giving Fund) as a charitable beneficiary and specify the dollar amount, asset type, or percentage of your estate you’d like to give.
3. Designate your beneficiaries
Name your DAF in your estate planning documents, along with any successor advisors. You can also include a beneficiary designation for your IRA, retirement plan, or life insurance policy, directing a portion to your DAF instead of to an individual.
4. Select your assets
Decide which assets you’d like to donate — cash, appreciated assets, or real estate. Your financial professional can help calculate the fair market value and guide you through the process for nonprofit corporations or public charities that will benefit.
5. Confirm your tax details
Provide your estate administrator with your DAF’s tax ID and confirm any tax-exempt status details with the DAF sponsor to ensure smooth handling.
Legal and tax considerations
Bequests to DAFs often come with meaningful tax benefits. You can generally claim a charitable deduction during your lifetime for any contributions made to the fund, even if grants are distributed later.
Once your estate is settled, the bequest itself may reduce your taxable estate — lowering potential estate taxes or capital gains exposure for your heirs. It’s wise to work closely with a tax advisor or estate planning attorney to confirm compliance with IRS regulations and make the most of your charitable and family goals.
What happens after you’re gone
A DAF can continue to do good long after your lifetime. Your successor advisors or designated charities can continue making grants in your name — turning your bequest into a ripple effect of generosity.
Here’s what that might look like:
- Your Giving Fund becomes an endowment. You can structure your DAF to act like a small-scale endowment, distributing grants annually to the charitable organizations of your choice.
- Your family carries it forward. Family members can join the decision-making, continuing your charitable legacy through thoughtful grantmaking.
- Your community benefits. Naming a community foundation or public charity as a beneficiary ensures that your DAF can extend its reach to local programs over time.
Example of a charitable bequest in action
Imagine this:
You name your GoFundMe Giving Fund as a charitable beneficiary in your will. You set aside a percentage of your estate and note your preferred causes, maybe youth education and housing stability.
When your estate is settled, that gift transfers seamlessly to your DAF. Your sponsoring organization handles the distributions, while your children (named as successor advisors) continue the grantmaking over time. It’s clean, tax-efficient, and deeply personal.
Why choose a DAF over a private foundation
Some people like the structure of a private foundation — meetings, filings, the full board experience. Others prefer a DAF because it skips all that. There’s no probate, no long list of administrative steps, and no public reporting.
A DAF just works quietly in the background, sending out grants, honoring your charitable intentions, and keeping your plan moving without the bureaucracy.
A modern way to give back
Whether you’re reviewing your retirement accounts, setting up a trust, or finalizing your will, adding a DAF to your plan ensures your generosity doesn’t stop when you do. It’s one of the easiest ways to establish a charitable legacy for supporting nonprofits and public charities well into the future.
A charitable bequest to your DAF is not about wealth; it’s about purpose. It is about telling the people you love and the world around you: I cared enough to keep giving.
This content is for educational purposes only and does not constitute tax, legal, or investment advice. Any financial or tax-related information presented is for illustrative purposes only. Please consult a qualified tax or financial advisor for personalized guidance. All information applies to the U.S. tax context and is subject to change based on IRS regulations.