Three myths about donor-advised funds

By Carlee Smith Jan 21, 2025 3 Min Read

Donor-advised funds make giving easy, efficient, effective and flexible. It’s the equivalent of having your own foundation and is helpful for anyone who gives more than once per year to multiple charitable organizations. Because of all these perks, there’s a lot of talk about DAFs – almost like they’re too good to be true.

We discuss three common misconceptions about DAFs and the facts behind the fiction below.

Myth 1: Donor-advised funds are granted from infrequently.

According to the National Philanthropic Trust’s 2024 DAF Report, grants from DAFs totaled $54.77 billion in 2023. Additionally, the Johnson Center of Philanthropy reports in its National Study of Donor-Advised Funds that 78% of accounts made at least one grant over a three-year period. These facts highlight one of the many benefits of DAFs – you can use them whenever you like! At CCF, requesting a grant is easy through our Donor Portal and you can easily add funds to your account with an ACH gift request. We process grants biweekly on Mondays so your funds will be available to your favorite charities, organizations and causes expeditiously.

Myth 2: Donor-advised funds limit giving.

There is no limit to how often you can give or how much you can contribute to your DAF. At CCF, we require all grants be made to certified 501(c)(3) nonprofits that do not stand against our Christian values. In addition to monetary gifts, we accept complex gifts such as real estate, retirement plans, life insurance, personal property, business equipment and more. We handle the check-writing and record-keeping and will send quarterly statements listing your gifts, grants, investment returns and your fund balance. It’s your job to request grants; it’s our job to make sure you have the easiest path to do so!

Myth 3: Donor-advised funds are only accessible to wealthy individuals.

While having “your own personal foundation” sounds expensive, DAFs are available to anyone! At CCF, our minimum fund size is $2,500. We accept stock, mutual funds, retirement assets, real estate and other tangible properties to fund your account.

In conclusion, donor-advised funds are an affordable, efficient way to make a difference in your community and beyond. At CCF, we’re here to help you give! Call us at 901-682-6201 with any questions.