Using a Donor Advised Fund (DAF) to make your intended charitable contributions allows you to donate today and give to your Charity of choice at any time in the future from your DAF account. The DAF is an separately identified fund or investment account maintained and operated by a section 501(c)(3) organization, which is called a sponsoring organization.

The DAF is composed of contributions made by the individual donor. Once the donor makes the contribution, the organization has legal control over it. However, the donor, or the donor's representative, retains advisory privileges with respect to the distribution of funds and the investment of assets in the account. Donors take a tax deduction for all contributions at the time they are made, even though the money may not be dispersed to a charity until much later.

DAF's offer tax benefits, including immediate tax deductions for contributions.

1. Income Tax: You receive an immediate income tax deduction in the year you contribute to your OAF. Since AEF is a public charity, contributions immediately qualify for maximum income tax benefits. The IRS does mandate some limitations, depending upon your adjusted gross income (AGI):
   • a.    Deduction for cash - up to 60 % of AGL
   • b.    Deduction for securities and other appreciated assets - up to 30 % of AGL
   • c.    There is a five-year carry-forward for unused deductions.
2. Capital Gains Tax: You will incur no capital gains tax on gifts of appreciated assets (i.e. securities, real estate, other illiquid assets.
3. Estate Tax: Your OAF will not be subject to estate taxes.
4. Tax-Free Growth: Your investments in a OAF can appreciate tax-free.
5. Alternative Minimum Tax (AMT): If you are subject to alternative minimum tax (AMT), your contribution will reduce your AMT impact.