Family Philanthropy: How to Use DAFs to Give Together
Family philanthropy is the act of families joining together to give back—sharing resources, values, and decisions to create a lasting impact on the causes they care about. Whether it’s responding to a crisis, supporting a beloved school, or funding a local initiative, family charity brings people closer through shared purpose.
For families seeking a structured, flexible way to organize their giving, donor-advised funds (DAFs) offer a compelling solution. A donor-advised fund allows donors to make tax-deductible contributions, potentially grow those funds through investments, and recommend grants to qualified charities over time. It simplifies charitable giving and empowers families to be more intentional in their generosity—all with one easy-to-manage account.With GoFundMe Giving Funds, families can create a family DAF that brings together the emotional joy of giving with the practical tools to make every dollar go further.
Engaging family in philanthropy
Involving your family in giving isn’t just a way to do more good—it’s a chance to pass on your values, deepen relationships, and empower future generations to lead with empathy.
Here’s how families can start engaging in family philanthropy:
- Start with shared values: Talk about what matters most to your family. Is it education, local community support, healthcare access, or environmental action?
- Make it a conversation, not a mandate: Encourage participation across generations. Invite children or young adults to suggest causes they care about.
- Schedule giving meetings: Use your donor-advised fund as the hub for these conversations. Review past grants, discuss future goals, and vote together on where to recommend your next round of funding.
A DAF acts as a central platform for these decisions, helping families stay organized and aligned over time.
Benefits of using DAFs for family giving
Using a DAF for family charity provides both emotional and strategic benefits. Here’s why more families are choosing donor-advised funds:
- Flexibility & control: Families can recommend grants at their own pace, supporting multiple nonprofits and causes over time. With just a $5 minimum grant through GoFundMe Giving Funds, you can start small and grow your impact.
- Immediate tax benefits: Donors will receive an immediate tax deduction when they contribute to the DAF – even if the funds are distributed to charities later.
- Succession planning: You can name successors and additional family advisors to continue your legacy. A donor-advised fund becomes a tool not just for current giving, but for multi-generational philanthropy.
Investment opportunity: Funds in your DAF can be invested, allowing them to potentially grow tax-free and increasing your capacity to give more over time.
Steps to establish a family DAF
Setting up a family DAF is straightforward—especially with platforms like GoFundMe Giving Funds that simplify the process for families new to structured giving.
- Open a DAF account
With GoFundMe Giving Funds, there are no fees to open your account, and contributions can start as low as $5. - Contribute to the DAF
Pooling contributions from family members into one account helps centralize your giving strategy and amplify your charitable impact. - Recommend grants
Use the platform to research causes and review eligible nonprofits. You can submit grant recommendations with just a few clicks.
Maximizing the impact of family philanthropy
Strategic giving isn’t just about dollars—it’s about long-term vision.
- Plan across the year: Use a DAF to schedule recurring grants, support seasonal needs, or respond to emergencies as they arise.
- Align giving with values: Revisit your family mission statement each year and ensure your grantmaking reflects those goals.
- Invest for growth: Choose an investment allocation that suits your giving timeline. This opportunity for growth means the possibility of more dollars available for the causes you care about.
Explore local giving: Engage with community foundations, mutual aid groups, or hyperlocal causes.
DAF or family foundation?
When considering how to structure your family’s giving, DAFs and private family foundations are two of the most common vehicles. Each offers unique benefits depending on your philanthropic goals, but there are key differences to keep in mind.
- Setup & administration: Donor-advised funds are simple to establish with no legal or tax filings required, while foundations are standalone legal entities that involve significant administrative work, legal setup, and ongoing compliance.
- Tax efficiency: Contributions to a DAF typically offer higher immediate tax deductions (up to 60% of adjusted gross income for cash donations), while private foundations are capped at 30% for the same. DAFs also provide a single, consolidated tax receipt.
- Privacy: DAFs allow donors to give anonymously, while foundations must publicly disclose financial details and grant recipients in IRS filings.
- Grantmaking flexibility: Both vehicles can support a wide range of qualified charitable organizations. However, donor-advised funds generally offer quicker and easier grant disbursement, with less paperwork and oversight.
- Cost: Foundations often require legal, accounting, and administrative support, which can be costly. DAF sponsors like the GoFundMe Giving Fund offer transparent, no fee structures with no admin fees and only a $5 minimum to start.
While a foundation may appeal to families with complex estates or those looking to hire staff and manage programs, a family DAF is ideal for those seeking a flexible, tax-efficient, and low-maintenance way to give together.
How to get started with GoFundMe Giving Funds
Creating your GoFundMe Giving Fund is simple, flexible, and designed with community impact in mind. You can:
- Open an account with no minimum contribution
- Contribute funds at any time and receive a single, simplified tax receipt
- Discover vetted nonprofits directly on the platform
Whether you’re just beginning your journey or ready to scale your giving, GoFundMe Giving Funds will help your family 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.