Legacy planning and donor-advised funds: how to leave a charitable legacy
Legacy planning usually brings to mind paperwork: wills, trusts, maybe a note about who gets the house. But a legacy is more than that. It’s the mark you leave on people and causes after you’re gone. For many, that means giving back through a donor-advised fund (DAF) — a simple, long-term way to keep generosity working long after you stop.
This guide explores how DAFs support legacy planning, the benefits of using GoFundMe Giving Funds, and how you can start leaving a charitable legacy—on your terms.
Looking at legacy a little differently
IPlanning a legacy isn’t just filling out forms or prepping assets. It’s deciding what story you want told when you’re not here to tell it.
That story might include:
- Naming beneficiaries for your retirement accounts or life insurance policy
- Laying out your charitable giving priorities
- Creating a plan that keeps your impact moving
Some people see this as estate work. Others see it as an act of trust— handing the next generation a roadmap of what mattered most.
Why giving belongs in the plan
Leaving a little good behind shapes how people remember you, and how that good keeps going. Adding philanthropy to your plan helps you:
- Support nonprofits and public charities that already reflect your values
- Model generosity for family members and future generations
- Ease your tax load with smart moves that reduce estate taxes or boost your income tax deduction
When giving is woven into your estate planning, it becomes part of your family’s purpose, not an afterthought but a continuation of your philanthropic goals.
Where donor-advised funds fit
A donor-advised fund works like a home base for generosity. You can contribute cash, real estate, or appreciated assets, get an immediate tax deduction, and decide later how to share that gift among charitable organizations.
People tend to choose DAFs because they’re:
✅ Simple
One account, one receipt, no extra filings
✅ Flexible
Give when the timing feels right
✅ Ongoing
Name successors so your giving continues
✅ Growing
Investments can increase your balance tax-free over time
Your DAF sponsor, the sponsoring organization that manages your account, handles the IRS paperwork and grantmaking so you can stay focused on purpose instead of process.
DAFs vs. private foundations
Both can serve a strong charitable legacy, but they function differently.
- Setup: A DAF opens in minutes; a private foundation can take months.
- Tax benefits: DAFs allow larger charitable deductions (up to 60 percent of adjusted gross income for cash and 30 percent for appreciated assets).
- Privacy: DAFs can stay private. Foundations must file public reports listing grantees and totals.
- Administration: Foundations require board members, accountants, and yearly tax returns. DAFs don’t.
If you care more about impact than infrastructure, a DAF keeps things lean without losing intention.
How to fold a DAF into your estate plan
A few simple steps can make your giving part of your succession plan:
- Add your DAF as a beneficiary in your IRA, retirement plan, or insurance policy.
- Choose who continues it — your kids, loved ones, or a financial advisor.
- List backup charitable beneficiaries in case no one’s left to manage it.
Work with a tax advisor or financial professional to keep your plan aligned with current tax laws and fair-market-value rules.
Who is legacy planning right for?
Legacy giving through a DAF isn’t just for high-net-worth individuals. It’s for anyone who wants to make a thoughtful, ongoing impact. Whether you’re:
- A parent in your 30s looking to model values of generosity for your children.
- A retiree wanting to do more for your community and help others rally around causes you love.
- Someone navigating their first estate plan and looking to simplify the charitable side.
Giving Funds offers an easy, flexible way to give now and for the future.
Legacy donation in action: What it might look like
Scenario
What You Can Do
You want to support education for years to come
Set up recurring grants from your Giving Fund to go to local school nonprofits
You want your family to carry on your giving values
Appoint your children as successor advisors to continue granting after your lifetime
You receive a financial windfall and want to give wisely
Contribute to your Giving Fund now, claim the tax deduction, and grant strategically over time
💡 Pro tip: You can also invite family or friends to contribute to your Giving Fund, making it a shared lasting legacy and deepening your impact together.
Introducing GoFundMe Giving Funds: New approach to leaving a legacy
Cost and setup
With GoFundMe Giving Funds, there are no start-up fees, no minimum balance, and no hidden costs. Your initial contribution can be any dollar amount (starting at $5) that feels meaningful.
Passing the torch
Successors are there to carry your story forward. They can adjust the giving strategy, continue grantmaking, and involve younger relatives so future generations stay connected to the mission. It’s a quiet way to teach what generosity looks like in real life.
Investing for growth
If you want your gifts to stretch further, consider investing your DAF. The balance grows tax-free, giving you more to distribute later. The investment options are managed by vetted brokerage partners, keeping things transparent and simple.
Leaving a charitable legacy feels good (and does good)
A DAF isn’t only for wealthy philanthropists. It’s a modern giving vehicle for anyone who wants their charitable donations to outlive them. You can build your legacy of giving over time — through small, thoughtful steps that match your capacity and your generosity.
Legacy planning doesn’t have to wait. Whether you’re years from retirement or updating your will next week, you can start setting aside funds for a future of impact now.
Open your Giving Fund today and start shaping the story your family will tell.
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.