About Donor-Advised Funds

Donor Advised Funds at Endaoment: DeFi's first Community Foundation

What is a DAF?

A Donor-Advised Fund (DAF) is a charitable account owned and managed by a public charity (that’s us).

Standard DAFs have a Primary Advisor (that’s you), who donates assets to their fund. Those assets are sold immediately for cash and used to make grant recommendations over time to US-based nonprofit organizations.

With a Donor-Advised Fund, you can deposit long-term capital gains assets to your DAF, and in many cases deduct the full value of the gift, offsetting taxable income.*

As a result, the DAF financial vehicle has exploded in popularity as families throughout the country incorporate them into tax-planning strategies and targeted community philanthropy.

Since 2019, more than $120 billion has been funneled into nearly 750,000 DAFs in the United States, accounting for over 12% of total individual giving. This translates to over $23 billion dollars making their way to nonprofit organizations.

When you donate tokens to an Endaoment DAF, we immediately exchange your gifted tokens for USDC via Uniswap and deposit the proceeds at your DAF’s contract address on-chain.

Once funded, you can recommend grants of the funds in your DAF to a selection of more than 1.5 million nonprofit organizations throughout the United States.

When your grant is reviewed and approved by Endaoment, we’ll contact the receiving organization, onboard them into the Ethereum ecosystem, and transfer them the recommended grant amount.

What’s special about Endaoment DAFs?

Our model focuses on throughput; moving the preponderance of funds in a DAF to the organizations and communities that need it most in a timely .

While most DAFs are built on a model of "administrative" and "investment" fees that can add up to 5%+ over the life of the DAF, Endaoment is built on a lifetime maximum fee of 1.5%; 0.5% on inbound donations and 1.0% on outbound grants. See our Fee Schedule & Comparison for more information.

*Endaoment does not provide tax advice. Please consult with a licensed tax professional to further understand the impact of opening and contributing to a Donor-Advised Fund.