How often should you update your DAF agreement?

We often tout the benefits of donor-advised funds – the ability to reap immediate tax benefits, to direct those funds to deserving causes and organizations, and to consolidate and simplify your giving to these organizations. But while a DAF can be a relatively simple way to manage your giving, it’s not totally hands-off. In addition to directing where your dollars go, one of the most important maintenance items for any DAF is to periodically update your agreement.

We regularly communicate with donors and need accurate information to stay in touch.

• Has your address changed?
• Did you get a new phone number?
• Do you have a new email address?

If you answered yes to any of the above questions, we encourage you to click here to access our digital donor-advised fund agreement. This form is the easiest way for you to update your information and allows us to keep the most up-to-date information on file. Our goal for 2025 is for all donors to update their DAF agreements.

If you have not revised your DAF agreement online in 2025, we encourage you to do so.

All about DAF agreements:

What’s included in the DAF agreement?

The DAF agreement is essentially a contract that includes basic information like the Christian Community Foundation’s responsibilities to our donors and, most importantly, what happens to the fund when the owner passes away. It establishes successors for the account and relays the donor’s wishes for their funds, allowing family members and loved ones to understand the relationship between CCF and the fundholder regarding their fund. Other documents that may be included are Schedule A forms and end-of-life planning documents, like a will. We encourage all donors to ensure their wishes for their donor-advised fund are accurately portrayed in any estate planning materials.

Why should I update my DAF agreement?

Most people’s circumstances change over time. We also grow as people and in our giving philosophies. Consider things like:

• Have outside factors changed that may affect your fund? For example, if capital gains taxes rise while personal income taxes fall, you may seek to put more stocks into your fund instead of cash. The same may apply to considerations like estate taxes or other concerns.
• Is your succession plan still the right fit? Perhaps you’ve named another individual to direct your fund after your passing, but you’d like to make a change. Or maybe your agreement specifies that the funds should all be distributed to a specific group of organizations, and you’d like to update those directions.

Succession is – above all – one of the most important parts of the agreement, and it’s likely the one you’ll update most often. When you update your DAF agreement, you can also include guidance on who you’d like to make decisions about your donor-advised fund while you’re still alive.

Is there such a thing as updating my DAF agreement too much?

Think of a DAF agreement like your will. After all, the purpose of your will – to ensure your assets are transferred and your loved ones cared for according to your wishes – is the same. We recommend updating these two critical documents at the same time.

You probably don’t update your will every year. You don’t need to update your DAF agreement annually, either, but it’s a good idea to revisit it every few years to ensure the contract is consistent with your current giving philosophy, your needs, your future goals, and the needs of the causes and organizations you support.

Ready to review or update your DAF agreement? Click here to update your form online.