Family philanthropy: how to use DAFs to give together
Family philanthropy isn’t only about money. It’s about connection —a family deciding together what matters and putting that belief into action. Maybe that’s helping a local food bank. Maybe it’s funding a scholarship at your old school. Or maybe it’s just sitting around the table and deciding, we want to do something good this year.
For families who want structure without the paperwork, donor-advised funds (DAFs) make it simple. You make a charitable contribution, receive a tax deduction, and then recommend grants to nonprofit organizations or public charities when the time feels right. No endless spreadsheets. No family foundation board to run. Just clear charitable giving that fits your life.
And with GoFundMe Giving Funds, families can open a DAF that blends practicality with the emotional joy of making a difference— one giving vehicle that manages your entire family giving plan and helps create real social impact together.
Bringing your family into the giving process
When giving becomes a family effort, something shifts. Conversations open up. You start hearing what everyone cares about, what makes them light up.
Here’s how to begin:
- Talk about values. Ask: what causes matter most to us? Education? Healthcare? Local community work? Maybe something inspired by an initiative your family supported before.
- Keep it collaborative. Let every voice count. Maybe the kids care about animals. Maybe a grandparent wants to support a community foundation or faith-based nonprofit.
- Set time to check in. Once a year, gather around and look at the grants you’ve made through your DAF. Celebrate what worked, and talk about what’s next.
A DAF turns that conversation into action. It becomes a central hub for decision-making, bringing together multiple family members (across generations) in one place.
Benefits of using DAFs for family giving
Families use DAFs because they’re easy to run, tax-friendly, and honestly, less stressful. They let you focus on the giving itself instead of the mechanics behind it. For many philanthropic families, it’s the most effective philanthropy tool available.
- Flexibility and control. You decide when to give, who to support, and how often. One year it might be a community foundation, the next a global relief fund.
- Immediate tax benefits. You can take an income tax deduction right away, even if you distribute the funds later.
- Legacy planning. Add family members or name successors to carry on your philanthropic legacy. A DAF can evolve as your multigenerational family grows, keeping your giving strategy consistent through every stage of your family’s lifecycle.
- Room to grow. Funds inside the DAF can be invested and grow tax-free, increasing what you can grant over time.
In short, a DAF combines the benefits of a private foundation with the simplicity of a single, tax-exempt account.
How to start your family DAF
Getting started is easier than people think.
- Open a DAF account
With GoFundMe Giving Funds, there’s no setup fee, and you can start with as little as $5. - Contribute to the DAF
Bring in other family members. Combining donations in one fund simplifies record-keeping and strengthens your overall giving plan. - Recommend grants
Once the fund is ready, suggest where the money should go. The sponsoring organization manages compliance and IRS reporting, ensuring that grantees meet all requirements for tax-exempt organizations.
It’s a clean, accessible way to keep family philanthropy aligned with your shared impact strategies and long-term philanthropic goals.
Making family philanthropy more meaningful
Once you’re up and running, revisit your giving every now and then. Real philanthropy grows through reflection, and through a little honest talk about family dynamics and what still feels right.
- Plan across the year. Use your DAF to set recurring grants, respond to community needs, or support nonprofit initiatives that inspire your family.
- Match giving with values. Pull out your family mission statement and ask, Does this still reflect who we are as philanthropists?
- Invest thoughtfully. If you choose to invest your charitable balance, pick an allocation that fits your timeline. Growth here means more to give later, and more visible social impact.
- Stay local. Community foundations and smaller nonprofits often benefit most from consistent, family-based grantmaking.
It’s less about perfection and more about building a rhythm of generosity your younger generations can inherit and make their own.
DAF or family foundation: which fits better?
Families often weigh these two side by side. Both are valid; the choice depends on how involved you want to be and what kind of philanthropic legacy you’re hoping to build.
Here’s what to think about:
- Setup: A DAF can be opened in minutes. No legal paperwork, no IRS filings. A private family foundation, on the other hand, takes months to establish since it requires incorporation, IRS recognition, and bylaws.
- Tax deduction: DAFs offer the higher limit — up to 60% of your adjusted gross income for cash donations and 30% for appreciated assets. Private foundations are capped at 30% for cash and 20% for appreciated assets.
- Privacy: With a DAF, you can give anonymously if you prefer. Private foundations must file IRS Form 990 each year, which makes financial details and grantees public.
- Grantmaking: DAFs make giving quick and simple. The sponsoring organization handles the logistics, so you can focus on your impact. Foundations give you full control, but that comes with extra paperwork, oversight, and compliance.
- Cost: DAFs usually have no setup costs. Private foundations often require ongoing legal, accounting, and administrative support to stay compliant.
A DAF appeals to most philanthropic families because it’s accessible and tax-exempt. A private foundation makes sense for donors who want total control, handle staff, or manage direct charitable programs.
Either way, both options support nonprofit organizations and continue the family’s shared purpose of effective philanthropy.
How to get started with GoFundMe Giving Funds
GoFundMe Giving Funds makes the DAF process personal and approachable. You can:
- Open an account with no minimum contribution
- Combine all charitable giving into one streamlined giving vehicle
- Receive a single tax receipt for all charitable contributions
- Support vetted nonprofits and community foundations directly
- Share updates and milestones across social media to inspire others to give
Whether your family is new to philanthropy or building on an established tradition, GoFundMe Giving Funds helps philanthropists stay focused on what matters most: people, purpose, and impact.
Involving your family in giving isn’t just a way to do more good—it’s a chance to pass on your values, deepen give with purpose and clarity.
This content is for educational purposes only and does not constitute tax, legal, or investment advice. Financial or tax-related calculations provided are for illustrative purposes only. Readers should consult a qualified tax or financial professional for personalized guidance. All information provided here is tailored to U.S. tax laws and regulations.