Cost of Setting Up a DAF
Many people assume donor-advised funds (DAFs) are only for the ultra-wealthy. With high account minimums and complex fee structures, that reputation makes sense. But here’s the good news: that’s changing fast.
GoFundMe Giving Funds make DAFs more accessible, affordable, and impactful than ever before. Whether you’re giving $5 or $5,000, you can open a Giving Fund, grow your charitable dollars, and support the causes that matter most to you—without jumping through hoops or paying excessive fees.
In this guide, we’ll break down how much a donor-advised fund costs, what fees to look out for, and how to choose a DAF that fits your values and your wallet.
What is a DAF?
A donor-advised fund (DAF) is a charitable giving account that lets you contribute funds, receive an immediate tax deduction, and recommend donations to charities over time.
Why people love DAFs:
- Tax benefits now: Get a deduction the same year you contribute.
- Flexibility later: Give to charities on your own schedule.
- Simplified records: One place to manage and track all your giving.
How a DAF works in 3 steps
1. Contribute to your Giving Fund
2. Get a tax receipt for the full amount
3. Recommend grants to charitable organizations
If you want to learn more, check out our guide on what a DAF is.
Typical DAF fees: What most providers charge
DAFs are powerful tools, but understanding their cost is key. Here’s what you’ll typically see across traditional platforms:
| Provider | Minimum to Open | Annual Admin Fee | Minimum Grant | Investment Options |
| Fidelity Charitable | $0 | 0.60% | $50 | Yes |
| Schwab Charitable | $0 | 0.60% | $50 | Yes |
| National Philanthropic Trust | $10,000 | Up to 0.85% | $250 | Yes |
| GoFundMe Giving Funds | $0 | $0 | $5 | Yes |
Donor-advised fund fees depend on the platform—but many charge between 0.60% and 1.00% annually, on top of investment management fees and grant minimums.
Long-term impact of high fees
Even a small percentage can add up over time. Let’s say you donate $10,000 to a traditional DAF with a 1% fee:
- Year 1: $100 goes to fees
- Year 5: $500 total in fees
That’s money that could’ve supported a local school or charity.
GoFundMe Giving Fund: low-cost alternative
GoFundMe Giving Funds are built for real people—not just high-net-worth investors. Our offering flips the traditional model and makes donor-advised fund fees transparent, simple, and accessible.
Here’s what sets us apart:
- $0 to open
- Contribute as little as $5
- $5 minimum grant amount
- No admin fees
- Give to qualified charitable organizations
- One tax receipt—no need to track dozens of donations
Example:
Beth, a retired office administrator in Spokane, wants to give $1,000 a year to support local causes. With most donor-advised funds, she’d lose $6 to $8.50 of that amount just to administrative fees. It might seem like a modest amount, but when her goal is to maximize local impact on a fixed budget, even small fees matter.
With GoFundMe Giving Funds, Beth can give $1,000 a year, support causes close to home and track everything in one place, with no fees eating into her impact.
Learn how to set up a DAF with our guide.
Give more, worry less
Understanding DAF fees is key to making your charitable dollars go further. It’s not about how much you give—it’s about giving intentionally, with confidence and clarity.
With GoFundMe Giving Funds, you can start with just $5. You don’t need a financial advisor or a large estate to give meaningfully. You just need the desire to help.
Whether you’re new to giving or ready to bring more strategy to your generosity, we’re here to help you:
- Give on your terms
- Track every dollar
- Make a real impact
Open your Giving Fund today—start with just $5.
This content is for educational purposes only and does not constitute tax, legal, or investment advice. Any financial or tax-related calculations provided are illustrative examples only and should not be relied upon for making financial decisions.
Laws and regulations regarding donor-advised funds vary, and tax benefits depend on individual circumstances. Readers should consult with a qualified tax, legal, or financial professional for personalized guidance.