Can Donor Advised Funds Give to Churches? + FAQs

Yes – donor-advised funds (DAFs) can give to churches under U.S. tax law, since churches qualify as charitable organizations. In fact, Americans donated roughly 24% of their total giving to religious causes last year, and DAFs alone granted over $54 billion to charities in 2023 – a large share of it to faith-based organizations.

What’s in this article? Here’s what you’ll learn:

📖 DAFs 101 & Churches: What donor-advised funds are, how they work, and why churches (and other houses of worship) qualify for DAF gifts.
⚖️ IRS Rules & Tax Laws: Key federal tax rules that govern DAF donations to churches – covering 501(c)(3) status, public charity definitions, and special IRS treatment of religious organizations.
🏛️ Federal vs. State Nuances: Differences between national guidelines and state-level twists in California, Texas, and New York that affect DAF giving to churches.
✅ Pros, Cons & Best Practices: The advantages (tax benefits, anonymity) and drawbacks (loss of control, restrictions) of using DAFs for church giving, plus common pitfalls to avoid.
📊 Real Examples & FAQs: How major DAF sponsors like Fidelity, Schwab, and Vanguard facilitate grants to churches, illustrated scenarios of DAF gifts to churches, and quick answers to frequently asked questions.

Donor-Advised Funds and Churches: The Basics

What is a Donor-Advised Fund (DAF)? A donor-advised fund is a charitable giving account you set up under a 501(c)(3) sponsoring organization (like a public foundation or community foundation). You donate assets (cash, stocks, etc.) into the DAF and get an immediate tax deduction for that contribution. The sponsoring charity legally owns the funds at that point, but you (as the donor) retain the right to “advise” or recommend how those funds are granted out to other charities over time. In essence, a DAF is like a charitable investment account: your donated funds can be invested and grown tax-free, and you can request grants to your favorite nonprofits whenever you’re ready.

Can DAFs support churches? Yes. DAFs can make grants to any organization that is an IRS-qualified public charity. Importantly, churches are considered public charities under federal law. Even if a church hasn’t formally applied for 501(c)(3) status (more on that below), the IRS automatically deems bona fide churches and other houses of worship as tax-exempt charitable organizations. That means a church generally can receive grants from a donor-advised fund just like any other charity. DAF sponsoring organizations (e.g., Fidelity Charitable, Schwab Charitable, community foundations) include churches in their databases of eligible grantees. For example, Fidelity Charitable explicitly notes that its eligible grant recipients include “many religious organizations” that haven’t filed with the IRS because they are still 501(c)(3) charities by nature.

How does a DAF grant to a church work? It’s straightforward:

You contribute to your DAF – say you donate $10,000 to your DAF this year. You claim a tax deduction for that $10,000 now (because the donation went to the sponsoring charity that runs your DAF).
You recommend a grant to your church – at any later time, you log into your DAF account and request a grant (for example, $5,000) be sent to your church. You can usually specify the church name and even a purpose (like “general fund” or “building fund”), or just leave it unrestricted.
The DAF sponsor vets and approves – the sponsoring organization will verify that the church is indeed an IRS-qualified charity. Because churches don’t all appear in the IRS’s online database (many never formally registered), the sponsor may do a bit of due diligence (checking the church’s website, EIN, or asking for a letter of affirmation). Assuming the church meets the criteria of a church (and isn’t supporting something non-charitable), the sponsor approves the grant.
Funds are sent to the church – the DAF sponsor cuts a check (or electronic payment) to the church, often with a letter indicating the grant came from “The [Sponsor Name] Donor-Advised Fund at the recommendation of [Donor Name]” (unless you chose to remain anonymous). The church receives the money and can use it for its charitable religious activities.

From the church’s perspective, the donation typically comes from the sponsoring organization (for example, Fidelity Charitable Gift Fund), not directly from you. However, you can choose to have your name and address shared with the church (or remain anonymous). Either way, the church will not send you a tax receipt – because your charitable deduction was already triggered when you gave to the DAF. (Instead, the church may send a thank-you note or acknowledgment of the grant.)

Do churches need 501(c)(3) status to get DAF money? Technically, no separate IRS determination letter is required if the recipient is truly a church. The IRS exempts churches from having to file for tax-exempt status. As long as the organization functions as a church (regular worship services, established congregation, etc.), it is automatically a 501(c)(3) in the eyes of tax law (under section 508(c)(1)(A)). Donors can legally claim deductions for giving to such a church, and DAF sponsors can treat it as an eligible charity. In practice, many churches do apply for an IRS determination letter anyway to avoid any ambiguity – it reassures donors and grantmakers that the church is recognized as exempt from taxation and is eligible to receive tax-deductible contributions. But even if a church doesn’t appear in the IRS database, a DAF sponsor can still grant to it by confirming it meets the IRS’s definition of a church. (For instance, if a small local church lost its IRS listing due to a paperwork issue, it’s still eligible for DAF grants so long as it genuinely operates as a nonprofit church.)

Bottom line: donor-advised funds are designed to support public charities, and churches are very much in that category. If you have a DAF, you can absolutely use it to give to your church – whether it’s your weekly tithe, a special building campaign contribution, or a donation to the church’s outreach ministry. The DAF sponsor handles the transaction, and your church gets a grant check in the mail (often within a week or two of your recommendation).

IRS Rules & Tax Law: Can DAFs Legally Fund Churches?

To fully understand this topic, we need to unpack the relevant IRS rules and federal tax laws. There are a few layers: the rules defining DAFs and their limitations, and the rules around what counts as a charitable organization (especially for religious entities). Let’s break down the key points:

501(c)(3) and Public Charity Status: Under Internal Revenue Code §501(c)(3), charitable organizations (including churches) are exempt from federal income tax and can receive tax-deductible contributions. Churches are a special subset of 501(c)(3) organizations – they are classified as public charities (often under section 170(b)(1)(A)(i) in tax jargon, which specifically lists churches, temples, synagogues, mosques, and similar religious organizations). Unlike private foundations, public charities (churches included) generally have broad donor support or fall into categories that Congress wanted to favor (religious, educational, etc.). DAF sponsors are required to grant only to public charities (or certain operating foundations or government entities). Thus, a church, as a public charity, is an acceptable grantee.

Automatic Exemption for Churches: As mentioned, section 508(c)(1)(A) relieves churches from the normal requirement of applying to the IRS for recognition. The IRS has a list of criteria it uses to identify a “church” – such as having a distinct legal existence, a creed and form of worship, a regular congregation and services, an ordained clergy, etc. If those are met, the church is automatically tax-exempt. This matters for DAFs because a sponsoring organization might not immediately find the church in the IRS Exempt Organizations database. However, IRS publications make clear that donations are deductible even if the church has no IRS determination letter, so long as it meets 501(c)(3) requirements. DAF sponsors typically follow suit, often requesting information from a church that isn’t in the database to verify it’s actually operating as a church. Once verified, the DAF can proceed with the grant. (Many major donor-advised fund providers have encountered this, since plenty of small congregations never applied to the IRS – the sponsor might ask the church to provide organizing documents or a letter affirming it’s a church under IRS criteria.)

Pension Protection Act of 2006 – New DAF Rules: Donor-advised funds as we know them got specific attention in federal law in 2006. The Pension Protection Act (PPA) of 2006 added sections 4966 and 4967 to the tax code, officially defining “donor-advised fund” and imposing certain restrictions. Key takeaways from these laws and subsequent IRS guidance:

Qualified Charitable Recipients: A DAF can only make grants to qualified public charities (or to pay certain charitable expenses). Grants cannot go to individuals or to non-charitable entities. So, for example, your DAF cannot write a check to a specific individual in need at your church (that would violate the rules). But it can give to your church’s benevolence fund, letting the church then help individuals – because the grant is to the church (a charity).
No Donor Benefit (Excess Benefit Transactions): Neither the donor nor the donor’s family can receive more than incidental benefits from a DAF grant. If a DAF distribution results in a personal benefit to the donor, the IRS can impose an excise tax penalty (IRC §4967) on the donor and possibly on fund managers. For church giving, this means you cannot use a DAF to pay for anything that would give you a benefit – for instance, you can’t have your DAF buy tickets for you to attend the church’s fundraising dinner, or pay for a church auction item you won, or cover the portion of a donation that entitles you to a church-sponsored trip or premium. The benefit rule is strict: even small token benefits should be avoided (incidental benefits like a simple acknowledgement or being listed in a program are fine, but anything like free merchandise, meals, or services in return is a no-go).
Pledges and Commitments: Initially, there was confusion whether a DAF could fulfill a personal pledge to a charity. The IRS worried that if a donor made a legally binding pledge (“I promise to give $5,000 to my church’s capital campaign”) and then used a DAF grant to pay it, the donor might be receiving a benefit (relief of a financial obligation). However, in IRS Notice 2017-73, the IRS proposed rules effectively saying it would not treat pledge fulfillment as a prohibited benefit so long as certain conditions are met: (1) The DAF grant letter doesn’t reference the pledge or guarantee its fulfillment, (2) the donor/advisor doesn’t receive anything in return (same no-benefit rule), and (3) the donor doesn’t claim a second tax deduction for the DAF grant. In plain terms, this means you can recommend a DAF grant to satisfy a prior pledge to your church – just ensure the DAF sponsor sends it as a normal grant (no mention of “pledge payment”) and that you don’t try to deduct it again. Most DAF providers have built this into their policies now. Bottom line: You can use your DAF to fulfill a church pledge or tithe commitment as long as it’s handled quietly and you personally don’t get any quid pro quo. (If the church tries to credit you for the pledge on a donor wall or something, they should list the DAF as the donor to be safe.)
Bifurcated Donations and Tickets: The IRS also addressed scenarios where a donor might try to split a donation that has a non-deductible part. For example, suppose a charity gala ticket costs $200, and $75 of that covers the meal (non-deductible) and $125 is the charitable portion. Some donors thought: “I’ll pay the $75 out-of-pocket and have my DAF pay the $125.” The IRS has said no to this. Even if you attempt to separate the non-charitable portion, using a DAF to pay the rest is considered enabling the donor to attend/receive benefits – thus a violation. Applying this to churches: if your church has a banquet or retreat where there’s a fee, you shouldn’t use a DAF for any part of it if you or your family will attend or receive something. Similarly, membership dues to a church or religious organization that come with benefits (like access to facilities or member services) cannot be paid via DAF. The rule of thumb: a DAF grant must be 100% charitable with no strings attached.

Required Acknowledgments for DAF Contributions: A less-known rule – but important for donors – is that when you donate to your DAF in the first place, the tax law has special substantiation requirements. For any contribution of $250 or more, you need a contemporaneous written acknowledgment from the donee. In the case of a DAF, that means a receipt from the sponsoring org, which must state that the sponsoring organization has “exclusive legal control over the contributed assets.” Essentially, the IRS wants to be sure you truly gave the money away to charity (the DAF sponsor) and aren’t still treating it like your own funds. If that specific language isn’t in your gift receipt, a deduction can be disallowed. There was a recent court case where donors lost a large deduction because the acknowledgment letter from their DAF sponsor was deficient – it failed to properly affirm the sponsor’s control. So, don’t throw away your DAF contribution receipts, and ensure they contain the required statements. (Most big DAF providers do include this automatically.)

Churches and DAF Grant Agreements: Occasionally, a DAF sponsor might require a grant agreement or representation from a church before releasing funds. For example, the sponsor may ask the church to confirm that the grant won’t be used for lobbying or political activity (since 501(c)(3) charities are restricted in that area), or that no benefit will be given to the donor. Churches generally must abide by the same rules – they can’t use tax-deductible donations for partisan politics, for instance. Accepting a DAF grant is usually simple: the church just deposits the check and maybe signs a form if the sponsor requested one (some sponsors include a slip to be signed confirming no goods or services were provided in exchange for the grant). This is routine due diligence to keep everything in compliance.

In summary, at the federal level the law is very clear that:

Churches are eligible charities for DAF grants (treated as public charities under the law).
Donor-advised funds must not benefit the donor – meaning any church donation via DAF has to be a pure charitable gift, with no personal perks.
DAF sponsors carry responsibility to ensure grants are proper. They act as gatekeepers per IRS rules, but for a normal church donation that doesn’t present any unusual circumstances, approvals are typically quick.

Common Scenarios: DAF Giving to Churches in Practice

To make these rules more concrete, let’s walk through a few common giving scenarios involving donor-advised funds and churches. These will illustrate what’s allowed and what’s not:

Scenario 🎯	DAF Grant Allowed? ✅/❌ (and Why)
Donating to your church’s general fund or a special church project. For example: You recommend a $5,000 grant to your church, unrestricted or for their building fund.	✅ Yes, absolutely. Supporting a church’s general operations, building campaign, mission fund, etc. is a core charitable use of a DAF. The church is a qualified charity, and you’re receiving no personal benefit – it’s a straightforward donation. Many donors use DAFs for their regular tithes or year-end gifts to churches in exactly this way.
Using a DAF to fulfill a personal pledge or tithe. For example: Last year you pledged $10,000 to the church’s capital campaign. You want to recommend a DAF grant to cover that pledge.	✅ Yes, with conditions. It’s allowed if your pledge wasn’t legally enforceable and you don’t receive anything in return. The DAF grant should be made without referencing the pledge (so it appears as a normal donation). As long as the church doesn’t turn around and give you special recognition that equates to a benefit (beyond listing your name on a donor roll), it’s fine. The IRS has given the green light to pledge fulfillment via DAF under these circumstances. So you can pay your tithe or campaign commitment from a DAF, just ensure it’s treated like any other gift.
Paying for church event tickets, sponsorships, or memberships that involve benefits. For example: Your church is holding a fundraising dinner at $100/plate, or selling charity concert tickets, and you want to use your DAF. Or the church has a membership program where $500/year yields some perks.	❌ No, not in those forms. If attending the event or receiving perks, you can’t use a DAF for any portion of the payment. Even if there’s a “donation” component, the IRS considers the grant to confer a more-than-incidental benefit (a meal, entertainment, or privileges) on you. The entire grant would be tainted. In these cases, the proper approach is to pay personally for anything that involves a benefit. (One workaround: If you truly don’t plan to attend the event, some DAFs allow granting the cost of a table/tickets and having the seats donated to others – essentially you waive the benefit. But the conditions must be clear: the donor and related persons do not use the tickets.) As a rule of thumb, DAF = no donor goodies. Similarly, you couldn’t use a DAF to pay tuition to a church-run school or a summer camp fee at your church – those are personal benefits, not pure donations.

As shown above, most routine donations to churches are fine via donor-advised funds. The only things to avoid are those where you’re getting something back or trying to route personal expenses through the fund. If you stick to charitable gifts (unrestricted or designated for a program, with no strings for yourself), you’re in safe territory.

Pros and Cons: Should You Use a DAF to Give to Your Church?

Is it a good idea to donate to your church through a donor-advised fund? Let’s weigh the advantages and disadvantages.

Pros of DAF-to-Church Giving 📈	Cons or Drawbacks 📉
Immediate tax benefits: You get a tax deduction the moment you contribute to the DAF (potentially allowing you to “bunch” several years of church giving for a larger deduction in one year). This can maximize your tax savings, especially if you donate appreciated stock (no capital gains tax).	Loss of direct control: Once funds are in the DAF, you only advise on grants. The sponsor must approve the grant. While sponsors almost always follow donor recommendations to valid charities, you technically give up ownership. You can’t force a distribution if, say, the DAF sponsor had an issue with the church.
Anonymity option: DAFs let you give anonymously if desired. If you prefer privacy (e.g., you don’t want public recognition or further solicitation), you can have the grant come through without your name.	Fees and potential delays: DAF accounts usually charge administrative fees (and investment fees) which slightly erode the funds available for charity over time. Also, a grant to a less-known church might take a bit longer as the sponsor verifies details. Direct giving is instant; DAF giving may take days or weeks to process.
Simplicity & convenience: The DAF sponsor handles all donation receipts, check issuance, and record-keeping. You can consolidate all your charitable giving (to your church and others) in one account, making it easier to track and plan. No need to keep every church receipt for taxes – just the one from your DAF contribution.	No personal credit (if anonymous): If you choose anonymity, you might miss out on the personal joy or community recognition of giving. Even non-anonymously, the church’s records will list the DAF sponsor as the donor of record, which could complicate things like donor honor rolls or internal credit (if you care about that).
Strategic giving & growth: Funds in a DAF can be invested and potentially grow tax-free, meaning you could give more to your church in the future. It’s also useful for legacy planning – you can name your church as a beneficiary to receive grants from the DAF after your lifetime.	Use-it-or-not? There’s no required payout for DAFs annually (unlike private foundations with a 5% minimum). While that flexibility is nice, it has drawn criticism. If you park money in a DAF and delay granting it, your church doesn’t get the funds now. Direct gifts ensure immediate support; DAFs rely on the donor to initiate grants. (In worst cases, money can sit in DAFs unused – though many sponsors encourage payout.)
Complex gifts made easy: DAFs accept complex assets (stock, real estate, cryptocurrency) that your church might not be equipped to handle directly. You can donate such assets to the DAF, sell them tax-free, then grant cash to the church. This opens up larger giving opportunities without burdening the church with figuring out asset sales.	Sponsor policies: You are subject to the sponsoring organization’s policies. For example, some faith-based DAF sponsors might restrict grants to churches that align with certain beliefs, or a sponsor might refuse a grant if the church’s use is questionable under their guidelines. While mainstream sponsors are broad, it’s a consideration – direct giving doesn’t have a middleman with its own rules.

As seen, using a DAF for church donations can be extremely beneficial, especially for tax planning and convenience. The downsides are mostly about the indirectness: you’ve introduced an intermediary (the DAF sponsor) between you and your church. For most donors, the pros (tax deductibility, ease of giving assets, anonymity when needed) outweigh the cons, but it’s important to be mindful of those limitations (like not using the DAF for anything that benefits you personally).

Federal vs. State: Do CA, TX, NY Change the Rules?

Thus far, we’ve focused on federal law – which governs tax deductibility, IRS rules for DAFs, and charity status. Charitable giving in the U.S. is primarily a federal tax matter, but there are some state-level nuances to consider, especially in states like California, Texas, and New York:

California: California has been on the forefront of discussing DAF regulation at the state level. While no sweeping DAF law has fully passed as of this writing, the California legislature has considered bills to increase transparency and accountability for donor-advised funds. For example, proposals have included requiring DAF sponsors to annually report more data (aggregated) on their grants and possibly to enforce a minimum payout from DAF accounts (to prevent funds from sitting indefinitely). California’s interest stems from the fact that a significant share of charitable dollars (and tax deductions) are flowing into DAFs. A few years back, a bill (AB 1712) was introduced to explore these issues, and more recently there’s talk of new bills. So far, nothing in California law forces a DAF donor to pay out or affects your ability to give to a church via DAF. But donors in CA should be aware of the debate: the state wants more insight into where DAF money goes. Churches in California also benefit heavily from DAF grants, especially with the tech wealth in Silicon Valley – donors can contribute appreciated stock via DAF and direct millions to churches and faith-based charities. California law, separate from DAFs, also exempts religious organizations from the state’s charity registration requirements (as many states do). So churches in CA don’t have to register with the Attorney General’s Registry of Charitable Trusts, which is another reason DAF sponsors might double-check their bona fides. One quirky nuance: California has rules on so-called behested payments (when public officials ask donors to give to a cause). If those donations are made via DAFs, the ultimate donor’s name can be shielded (only the DAF sponsor might appear), raising some transparency concerns. California in 2022 passed regulations for online fundraising platforms (AB 488) and there’s an ongoing conversation about requiring disclosures of DAF donors in certain contexts, but again, no direct impact yet on everyday DAF-to-church giving.

Texas: Texas is a state with a large religious population and significant charitable giving to churches. There aren’t unique Texas laws restricting DAFs – Texas largely follows the federal framework. Texas does not have a state income tax, so one might say the tax incentive is purely federal for Texans. One state-level factor is that Texas’s Attorney General and state laws generally exempt churches from many regulatory burdens (like charitable solicitation registration or annual financial reporting to the state). So, just as at federal level, churches have a bit of special status. DAF sponsors granting to a Texas church may find it straightforward, especially if the church is part of a larger denomination with a group tax exemption or is otherwise recognized. Texas donors often utilize national DAF sponsors or faith-based DAF sponsors to give to their local churches. For instance, the National Christian Foundation (NCF) – while headquartered in Georgia – has a strong presence in Texas and facilitates a lot of giving to churches and ministries. In terms of state charitable law, Texas hasn’t pursued DAF-specific legislation; the philanthropic culture is more self-regulated. One nuance in Texas might be that many large churches operate their own foundations or donor-advised fund programs (e.g., community foundations affiliated with Christian communities), offering another route for donors. But by and large, Texas places no extra barriers on using a DAF for church giving.

New York: New York, home to the financial industry and many large foundations, also hasn’t passed DAF-specific state laws, but its regulators pay close attention to the nonprofit sector. The New York Attorney General’s Charities Bureau oversees charitable organizations – but again, religious organizations are typically exempt from the state’s registration and reporting requirements. So a church in New York might not file annual reports with the state, meaning information about it is less public. This could factor into a DAF sponsor’s vetting (they can’t pull a NY charity registry report on a church that’s exempt). New York donors who itemize on state taxes generally piggyback on federal charitable deductions (NY allows them similarly). There was a high-profile court case a couple of years ago (at the U.S. Supreme Court level) involving a California and by extension New York requirement that charities disclose major donors to the state – that rule was struck down for infringing on donors’ First Amendment rights. That case wasn’t about DAFs per se, but it means states like NY cannot force disclosure of donor names, including those who give via DAF. So anonymity is preserved. New York has robust laws against self-dealing and mismanagement for foundations and charities (including the Uniform Prudent Management of Institutional Funds Act – UPMIFA – which sets standards for how funds are managed). If a DAF is housed at, say, a community foundation in New York, that foundation must follow those fiduciary rules, but that doesn’t restrict your grant recommendations beyond the standard no-benefit rules.

In short, state laws currently have minimal impact on an individual’s ability to use a DAF to give to a church. The main considerations remain federal. However, the landscape is evolving: states like California (and possibly New York) are pushing for more oversight of DAFs, which could in the future lead to requirements like greater disclosure of how much money flows to religious causes, or even incentives to distribute funds faster. It’s something to watch, but as a donor or a church receiving a DAF grant, there’s no additional legal hoop at the state level aside from normal charitable trust laws and the special status that churches enjoy.

DAFs in Action: How Donor-Advised Funds Support Churches

Let’s look at how donor-advised funds are actually being used to support churches and religious ministries, using some real-world data and examples:

DAFs favor religious giving: Studies consistently show that religion is one of the top sectors supported by DAF donors. For instance, Fidelity Charitable (the largest DAF sponsor in the country) reported in its Giving Report that “religious organizations accounted for the largest proportion of grants” – in one recent year, roughly 27% of all Fidelity’s outgoing grants (by number of grants) went to religious groups, including churches. Similarly, Vanguard Charitable has noted that about a quarter of its grant dollars go to the religion category. In fact, Vanguard’s 2021 numbers showed religion was about 25% of its total granted amount, making it one of the top three cause areas (alongside human services and education). Translation: Billions of dollars from DAFs are flowing to churches, synagogues, mosques, and faith-based charities every year.
Major DAF sponsors routinely grant to churches: Schwab Charitable, another leading national DAF sponsor, often highlights that houses of worship are among the most supported charities. In 2020, Schwab Charitable’s donors made grants to around 100,000 organizations, and among the top five most popular recipients were the Salvation Army (a Christian church/charity) and Cru (Campus Crusade for Christ), which is a ministry organization. Thousands of smaller churches also received grants. As an example, one Schwab DAF donor was quoted saying they increased giving to their “local food bank, church food pantry, and homeless shelters” during the COVID-19 pandemic – showing DAF donors channeling funds to church-run community programs when needs arose.
Faith-oriented DAF sponsors: Not all DAF providers are secular financial giants. There are also sponsoring organizations specifically serving religious donors. The National Christian Foundation (NCF) is one of the largest DAF sponsors in the U.S., facilitating grants to evangelical churches and ministries. NCF has helped donors send over $14 billion to charitable causes since its founding, much of that to churches, missions, and Christian nonprofits. Likewise, community foundations in areas with religious donor bases often see a lot of DAF grant recommendations to local churches (e.g., a community foundation in a city might administer DAFs that benefit dozens of neighborhood churches).
Anonymous mega-donors to churches: DAFs enable large anonymous gifts. There have been instances where churches receive six-figure or even seven-figure donations from donor-advised funds with no individual’s name attached – the check might just say “Anonymous DAF Donor via Vanguard Charitable.” Church leaders sometimes don’t know who to thank! This shows how DAFs provide a veil of privacy for donors who feel led to make a big gift but stay out of the limelight. From the church’s perspective, as long as the funds come from a legit 501(c)(3) sponsor and are used for the church’s mission, they are happy to accept.
Building campaigns and special projects: Many churches have capital campaigns (for building new facilities, renovations, etc.) and receive sizable DAF grants toward these projects. For example, if a member of the congregation sells a business or has a windfall, they might put $1 million into a DAF and then recommend, say, $200,000 a year to the church’s building fund over five years. This method can be more tax-efficient and organized than giving it all at once or piecemeal outside a DAF.
Multi-church giving: Some donors use their DAF to systematically support a range of churches or ministries. For instance, a family might give to their local church, a couple of church plants in other cities, and an overseas missionary organization, all through their DAF account. The DAF becomes a one-stop hub for managing all those grants. One real example: a donor had a “tithing fund” DAF from which they automatically sent 10% of their quarterly income to various religious causes – their home church got a grant every quarter like clockwork, alongside grants to a seminary and a Christian charity. The DAF sponsor (in this case, a community foundation) handled the logistics.

These examples underscore that donor-advised funds are not some obscure or fringe tool when it comes to church philanthropy – they’re mainstream. Churches large and small across the country are receiving DAF grants regularly. For churches, it’s important to recognize DAF gifts properly (the donor might be listed as “John Doe Charitable Gift Fund”) and not to inadvertently treat it like a direct individual gift for receipting purposes. Many large churches now include a note in their giving literature: “You can give via donor-advised funds or charitable trusts – please contact our office for any needed information.” Typically the only info a DAF sponsor needs from a church is an EIN, address, and perhaps verification of status, but it smooths the process if the church is aware of how DAF grants work.

What Not to Do (Avoid These Mistakes!)

While using a donor-advised fund to give to a church is generally straightforward, there are some common mistakes that donors (and churches) should avoid. Here are the top things not to do:

Don’t try to skirt the no-benefit rule: It can be tempting to think, “Well, I’ll have my DAF pay for the charity dinner and I’ll just not eat the meal,” or “I’ll use my DAF for the church golf tournament fee and skip the swag bag.” The IRS has made it clear this is not allowed. Any offer of goods or services in exchange for a gift taints the DAF grant, even if you personally claim you didn’t partake. Play it safe: never use a DAF for any transaction where you or a family member get something non-token in return. This includes school tuition (even if the school is church-run), raffle tickets, auction payments, gala tickets, membership dues that aren’t 100% charitable, etc.
Don’t have the church invoice you for a DAF gift: Sometimes churches send pledge reminders or invoices for contributions. If you’ve pledged $5,000 and you want to pay from a DAF, do not have the church address the invoice to your DAF or otherwise suggest the DAF is paying a debt. Instead, simply recommend the grant on your own initiative. The payment should look like a voluntary donation from the DAF sponsor, not a payment of an obligation. If a DAF sponsor sees language like “Invoice for Pledge #123,” they might refuse the grant to avoid that “material benefit” issue. Coordinate with your church – you can let them know a grant is coming, but ask them not to mention “fulfilling pledge” on any correspondence with the DAF.
Don’t double dip on deductions: As a donor, you can’t claim a tax deduction for the grant that goes from the DAF to the church – you already got your deduction when you donated to the DAF. This sounds obvious, but mistakes happen. For example, a church might mistakenly send you a year-end statement listing your DAF grants as if you gave them (because in their internal records, they know it was “on your recommendation”). Make sure you (and the church’s finance team) understand that those are not to be counted in your personal charitable deduction total. Only your contribution into the DAF is deductible on your tax return, not the outflow to the church. Claiming both would be illegal (and the IRS does cross-check DAF sponsor reports, so you could get caught).
If you’re a church leader, don’t promise special treatment to DAF donors: Churches should avoid any arrangement that looks like a quid pro quo for a DAF gift. For example, if a member directs a big gift through a DAF, you shouldn’t say, “We’ll give you free use of the fellowship hall in exchange” or any perks. Even naming rights can be a gray area (naming a building after a donor who gave through a DAF is generally fine, that’s considered an incidental benefit – it’s an honor, not a personal benefit in terms of goods/services). But something like “DAF donor gets VIP parking space” would be problematic. Basically, treat DAF-origin donations like any other donation – thank the donor (if known), acknowledge them in ways that don’t involve money value, but don’t give them stuff.
Don’t neglect the paperwork: As the donor, keep records of your DAF contributions (the money you put in) and the grants (what went out to the church). Even though you don’t deduct the grants, you want to track them. If the IRS ever audits your charitable contributions, you need to show the DAF contributions and that you got the proper acknowledgment from the sponsor. And if you’re the church, keep copies of any correspondence from the DAF sponsor, as well as how you used the funds (standard practice for any restricted gift). While the DAF sponsor isn’t going to police the specific use in most cases, you still owe it to any donor to apply the funds as intended.
Don’t assume the DAF grant arrived without follow-up: If you (the donor) recommend a grant to your church and you don’t hear anything for a while, follow up with the church. Sometimes checks can get lost or go to an old address if records aren’t updated. It’s rare, but sponsors like Fidelity or Schwab might put a grant on hold if they need more info (say, the church recently moved or had a name change). So make sure the church actually received the grant. As a church, likewise, if a member tells you “I sent the donation via my Fidelity DAF,” and you haven’t seen it in a reasonable time, reach out to the donor or the sponsoring org to confirm status. Communication prevents awkward situations where each party assumes the other got the money or the request.

By avoiding these pitfalls, you ensure that your generous contributions via a DAF truly benefit the church as intended, without any compliance hiccups. The overarching principle: treat DAF grants as pure donations and keep everything above board.

Detailed Examples: How DAF Gifts to Churches Work

Let’s illustrate with a couple of detailed hypothetical examples, to bring all these rules and best practices together:

Example 1: “Bunched” Giving to a Local Church – Maria and Alex are a married couple in New York who normally donate about $5,000 each year to their church. With recent tax law changes increasing the standard deduction, they find they don’t itemize every year. In 2025, they decide to “bunch” their donations by contributing $15,000 to a donor-advised fund at Vanguard Charitable. They claim that $15k as a charitable deduction on their 2025 taxes (helping them itemize that year). Over 2026, 2027, and 2028, they then recommend grants of $5,000 each year from the DAF to their church (which is a qualified 501(c)(3) congregation). Each time, the church receives a check from Vanguard Charitable for the grant. Maria and Alex don’t claim any deductions for those grants on their tax returns (since that would be double counting), but the church gets the same support as it would have if they gave directly. The benefit here: by using the DAF, the couple was able to maximize one year’s tax deduction and still fund the church for three years. The church noticed no difference except the checks came via Vanguard. (Maria and Alex chose to have their name disclosed on the grant, so the church knew it was from them and thanked them accordingly.) This example shows how a DAF can be used strategically to amplify tax benefits while maintaining steady giving to a church.

Example 2: Donating Appreciated Stock to Fund a Church Building Project – Imagine John in California has $50,000 worth of stock that he bought years ago for $20,000. If he sold it, he’d face capital gains tax on the $30k profit. Instead, John transfers the shares directly to Schwab Charitable into his DAF. He gets a fair market value deduction of $50,000 on his tax return and pays no capital gains tax. He then recommends a $50,000 grant to his church’s new sanctuary building fund. Schwab Charitable liquidates the shares (tax-free because Schwab is a charity) and sends the $50k to the church. The church is ecstatic – that’s a major gift to their campaign. John fulfilled what he wanted to do (help the church build) but in a tax-smart way that also saved him perhaps ~$7,000 in capital gains taxes. The church might not have been able to handle an in-kind stock donation on its own (some small churches don’t have brokerage accounts or policies for stock gifts), but through the DAF it was seamless. The only extra step was that Schwab Charitable’s team double-checked the church’s eligibility (the church hadn’t filed an IRS Form 990 since churches aren’t required to, but Schwab confirmed it was indeed a bona fide church with an address and likely met the IRS church criteria). In a week’s time, the church got the funds. John did not attend the donor recognition dinner the church held for major donors (just in case, to avoid any appearance of benefit – he politely declined the meal but was happy to be listed on the donor plaque). This example underscores how DAFs facilitate complex asset gifts to churches.

Example 3: Anonymous Legacy Gift to a Church Endowment – Susan is a supporter of her religious community in Texas but prefers to give anonymously to keep a low profile. Over several years, she put money into a National Christian Foundation donor-advised fund, taking deductions each time. In her estate plan, she arranged for any remaining DAF assets at her death to go into an endowment fund for her church (through NCF’s “Legacy Fund” options). Upon her passing, $100,000 from her DAF is granted to the church’s endowment, as an anonymous gift (the church only knows it came from NCF on behalf of “a generous donor”). This gift generates annual income that will support the church’s ministry for years to come. The church was not aware of Susan’s intentions; she used the DAF to keep it private and flexible (if she changed churches or wanted to add other charities, she could have adjusted the plan easily through NCF without rewriting her will). This example shows how DAFs can be part of planned giving to churches – offering a way to give substantially, even posthumously, with control over privacy and allocation.

Through these scenarios, you can see the versatility of donor-advised funds in supporting churches:

Regular annual giving (with tax planning in mind),
Special one-time big gifts (using appreciated assets or windfalls),
Anonymous contributions and estate gifts.

Each time, the donor had to ensure no impermissible benefits were involved and the process was coordinated with the DAF sponsor’s procedures, but in the end, the church benefited as intended.

What the Law Says: Key Tax Rules & Rulings

For the legally inclined (hello, attorneys and advisors!), here’s a summary of the key tax code sections, IRS guidance, and even court rulings that underpin everything we’ve discussed:

Internal Revenue Code §170: This section covers charitable contribution deductions. It establishes that donations to qualified organizations (including churches) are deductible. Importantly for DAFs, §170(f)(18) specifically says that for a donation to a DAF to be deductible, the donor must obtain a contemporaneous written acknowledgment from the DAF’s sponsoring organization stating that it has exclusive legal control over the assets. (This was added to ensure donors truly part with control when claiming a deduction.) Also, §170 sets different deduction limits: donations to public charities (which includes DAF sponsors and churches) have higher limits (e.g., up to 60% of AGI for cash, 30% for securities), whereas donations to private foundations are more limited. This is why giving to a church (public charity) via a DAF (public charity) retains the higher deduction limits.
IRC §501(c)(3) and §508: These define charitable organizations and the requirement (or lack thereof) for applying. As discussed, §508(c) exempts churches from the application requirement. IRS Publication 1828 is a guide for churches that spells out these rules in plainer language. For our purposes: churches are 501(c)(3) entities by nature if they meet the criteria, making them eligible donees.
IRC §509(a) and §170(b)(1)(A): These sections categorize public charities. Churches fall under §170(b)(1)(A)(i) specifically – they are not subject to the “public support test” that many nonprofits are, because they automatically count as publicly supported. They are also explicitly not private foundations. This distinction matters because donor-advised funds cannot make grants to private non-operating foundations without incurring potential penalties (and most sponsors prohibit it anyway). So being unequivocally a public charity means churches are fair game for DAF grants.
IRC §4966: This section (from the PPA 2006) defines “donor-advised fund” and lays out certain rules. It essentially says a DAF is a fund owned by a 501(c)(3) (the sponsor), identified with donor contributions, where the donor has advisory privileges. It also carves out some exceptions (certain funds are not considered DAFs, like a fund that makes scholarships if the donor only advises on selection without control, etc.). For churches, nothing in §4966 restricts grants to churches – churches are not on the list of disqualified recipients, except if a church were oddly structured as a supporting organization perhaps (but churches themselves aren’t typically Type III supporting orgs or anything – that’s more for charities supporting other charities).
IRC §4967: This is the teeth behind the no-benefit rule. If a donor or related person receives a benefit from a DAF distribution (more than incidental), the IRS can impose an excise tax on that person (25% of the amount, potentially). If the person knew it was improper, an additional tax can hit the fund managers who approved it. This threat is what keeps donors and DAF sponsors careful – you don’t want the IRS determining that your DAF grant to First Baptist Church incurred a benefit because you also got a free retreat out of it, thus slapping you with a fine. Notably, IRS hasn’t had to use §4967 much publicly, because sponsors police this pretty well.
IRS Notice 2017-73: Though not binding law, this notice gives insight into how the IRS plans to regulate DAFs. It addressed three main issues: (1) Using DAFs to fulfill pledges (and basically gave the okay, as long as no reference, etc., as we covered), (2) Using DAFs for the deductible portion of tickets (and said not okay), and (3) DAFs giving to organizations where the donor wants to count it towards their personal giving obligations (like paying a university for season tickets disguised as a donation – not okay). This notice has been relied upon by the charitable sector for interim guidance. The IRS indicated they might propose formal regulations adopting these positions. As of late 2023, indeed the Treasury released proposed DAF regulations which confirm a lot of this (pledge grants are fine, bifurcation is not, etc.). So expect these principles to be cemented in law soon.
Court Case – Keefe v. United States (2020): In this federal case (Northern District of Texas), a couple lost a charitable deduction for a large donation to a DAF because they didn’t meet the substantiation rules. They gave a partnership interest to a DAF but failed to get a proper acknowledgment stating the DAF sponsor had control over the asset. The court upheld the IRS’s denial of the deduction. This case is a reminder: the IRS and courts strictly enforce compliance requirements for DAF contributions. It doesn’t directly involve giving to churches, but it underscores that to use a DAF (often to give to churches later), you must follow the formalities at the front end.
Court Case – Pinkert v. Schwab Charitable Fund (9th Cir. 2022): This case tackled whether a DAF donor could sue the DAF sponsor over management of the fund (excessive fees, investments, etc.). The court ruled that the donor lacked standing – because once he gave to the DAF, those assets aren’t his property. He only has an advisory right, not a legally enforceable right to control the assets or demand how they’re invested or granted. This is a crucial legal affirmation of the DAF arrangement: donors can advise, but they don’t own the funds anymore. For church donors, it means if you put money into a DAF intending it for your church, you have to trust the sponsor to follow through. You can’t, for example, sue them if they delay or invest the money conservatively and you wish they hadn’t. (The reality is, sponsors have every incentive to keep donors happy and do facilitate the grants as requested, but legally they hold the cards.) Pinkert confirms that DAF sponsors owe their fiduciary duty to their charitable mission (and perhaps to the ultimate charitable beneficiaries), not to the donors.
State Laws – UPMIFA and others: While not about churches specifically, most states have adopted the Uniform Prudent Management of Institutional Funds Act, which applies to charities managing invested funds (including DAF sponsors and sometimes even church endowments). For DAF sponsors, it means they must prudently invest and use funds consistent with charitable purposes. It doesn’t directly change how a donor interacts with a DAF but ensures that the money is handled responsibly. If a church has its own endowment or DAF-like fund, the church itself might be subject to UPMIFA for investing those funds.

In a nutshell, the law supports the use of donor-advised funds for church giving, with a protective framework to prevent abuse. Donors get favorable tax treatment, churches count as valid beneficiaries, and guardrails (like the no-benefit rule) maintain the integrity of the charitable gift. As long as you stay within these well-established rules, you can confidently integrate DAFs into your church giving strategy.

Key Terms and Players (Glossary)

It’s easy to get lost in the terminology. Here’s a quick rundown of the key terms and entities involved in DAF-to-church giving:

Donor-Advised Fund (DAF): A giving vehicle (account) held at a public charity (sponsoring organization) where a donor has given irrevocable contributions but retains advisory privileges on how to grant out those funds. Think of it as a charity’s fund in your name from which you can recommend gifts. It’s not a separate legal entity; it’s a subset of the sponsoring charity’s assets.
Sponsoring Organization: The IRS term for the public charity that owns and operates the DAF. Examples include national funds (Fidelity Charitable, Schwab Charitable, Vanguard Charitable), community foundations (like Silicon Valley Community Foundation), or issue-specific charities (like Christian Foundation, Jewish Federations offering DAFs, etc.). The sponsor is a 501(c)(3) and has final say on grants. They ensure compliance with IRS rules and handle administration.
Donor (or Donor-Advisor): The individual (or family, or organization) who contributes to the DAF and then recommends grants. Once you give to a DAF, you’re often called an advisor on the fund rather than the owner. You typically have online access to manage the fund, suggest investments, and nominate grants. In context, this is you wanting to give to a church.
Church / Religious Organization: In our discussion, this is the recipient charity. It could be a traditional church congregation, or any house of worship (synagogue, mosque, temple) or an integrated ministry of a church. The key is it operates for religious purposes and qualifies as tax-exempt. Churches might have an EIN and 501(c)(3) status either automatically or via a determination letter. They are categorized as public charities, not private foundations. Often, churches are exempt from some reporting but they are still charitable orgs under the law.
501(c)(3) Status: This denotes an organization exempt from federal income tax under section 501(c)(3) and eligible to receive tax-deductible contributions. For a church, this status might be formal (with an IRS determination letter) or informal (automatically qualified by nature). When a DAF sponsor asks “Is this church 501(c)(3)?”, they mean “does it qualify as one?” – it doesn’t necessarily need a document, but it needs to meet the criteria.
Public Charity vs. Private Foundation: A public charity (like a church or DAF sponsor itself) generally has broad public support or serves certain favored purposes (religion, education, etc.). A private foundation is typically funded by one source/family and must pay out at least 5% of assets annually and is subject to stricter rules. DAFs exist only at public charities (by law, a private foundation cannot have a donor-advised fund). Grants from a DAF usually cannot go to a private non-operating foundation. But since a church is a public charity, that’s not an issue here. Why mention it? Because sometimes people compare DAFs to private foundations as giving vehicles – but for supporting a church, a DAF is usually simpler and gets better tax treatment.
Grant: The term for the funds going out from the DAF to the church. It’s not called a donation at that point, because from the sponsor’s perspective, they are granting money to another charity. When you recommend a grant, you’re advising the sponsor to make a gift to the church.
Grant Agreement/Letter: The correspondence that accompanies a DAF grant. Often it’s a letter from the sponsor saying “Enclosed is a grant of $X from the [Your Name] Donor-Advised Fund. This grant is made at the recommendation of [Your Name]. No goods or services were provided in exchange for this grant.” If you chose anonymity, it might just say “from an anonymous donor.” This letter often includes a grant purpose if specified (e.g., “for youth ministry program”). The church should keep this letter for their records.
DAF Sponsor’s Policies: Each sponsoring org has a handbook or policy guidelines. They outline things like minimum grant size (often $50 or $100), types of charities they won’t fund (some won’t do grants overseas unless via an intermediary, etc.), and their stance on things like pledge fulfillment. It’s a good idea for donors to be familiar with their sponsor’s policies. For example, some sponsors explicitly say “If you intend to use this grant to fulfill a pledge, do not have the charity reference the pledge in acknowledging the grant.” They all cover the no-benefit rule in some fashion.
Supporting Organizations and Integrated Auxiliaries: Occasionally, a church might have a related nonprofit, like a missions board or a school, which could be set up as a supporting organization. Some DAFs have restrictions on giving to certain supporting organizations (due to IRS complexity). But most church donors won’t encounter this unless your church’s charity is structured oddly. An integrated auxiliary of a church (like a men’s ministry or women’s auxiliary that’s not separately incorporated) is generally treated as part of the church for tax purposes. So a grant to “First Church – Women’s Guild” is effectively a grant to the church. DAF sponsors usually just need the main church’s info.
National Taxonomy of Exempt Entities (NTEE code): A bit technical, but this is a coding system for types of nonprofits. Churches often carry the code for “X” (Religion-related). When DAF sponsors report how grants are distributed by sector, they use these codes. That’s how we know stats like X% to religion. It’s just behind-the-scenes info showing that “religion” includes traditional houses of worship and related religious charities.

Understanding these terms helps clarify the relationships: You (donor/advisor) give to Sponsor (public charity, 501(c)(3)), which holds a DAF. You advise grants to Church (501(c)(3) public charity). IRS rules hover in the background, ensuring each link in the chain is respected (especially that the Sponsor is in control and the donor isn’t benefiting). Everyone has a role: the donor is the initiator with intent, the sponsor is the facilitator and enforcer of rules, and the church is the ultimate beneficiary carrying out charitable work with the funds.

DAF vs. Foundation vs. Direct Giving: What’s Best for Church Donations?

If you’re considering the best way to give to a church, you might wonder how donor-advised funds stack up against other giving vehicles. The three common options are:

Giving through a DAF,
Giving through a Private Foundation, or
Giving Directly to the church (writing a personal check or cash donation).

Here’s a side-by-side comparison on key factors:

Factor	DAF vs. Foundation vs. Direct
Setup & Administration	DAF: Easy to open; sponsor handles all admin and filings. Foundation: Complex setup (establish corporation, IRS approval) with significant cost and paperwork. Direct: No setup needed at all – simply write a check or donate directly.
Tax Deduction Limits	DAF: Treated as giving to a public charity – higher deduction limits (e.g., 60% of AGI for cash). Foundation: Subject to private foundation limits – generally lower (e.g., 30% of AGI for cash, and stricter rules on asset type values). Direct: Same as DAF (church is a public charity), so you get the higher deduction limits for direct gifts too.
Control Over Funds	DAF: Donor only advises; legal control rests with the DAF sponsor (donor cannot enforce decisions). Foundation: Donor (and family) retain direct control via the foundation’s board – you decide investments and grants (within charitable rules). Direct: Donor has control until the moment of donation; after you give, the church controls how the gift is used (unless you created a specific restriction).
Privacy	DAF: High privacy possible – grants can be anonymous and donor names are not publicly disclosed on tax filings. Foundation: Low privacy – must file a public tax return listing grants, assets, and often donor information (anyone can see where money went). Direct: Moderate privacy – your gift is usually only known to the church (and perhaps its community); no public filings list personal donations.
Ongoing Requirements	DAF: No legal payout requirement; no personal filings – sponsor handles all reports. (You can let funds grow or grant at will.) Foundation: Must distribute ~5% of assets each year by law; must file annual 990-PF returns and adhere to various regulations (against self-dealing, etc.). Direct: No ongoing requirements – you give when you want. Just keep receipts for your own tax records.
Costs/Fees	DAF: Typically ~0.5-1% annual administrative fee (plus investment fees) charged by sponsor; no taxes on earnings. Foundation: Significant costs – legal setup, annual accounting, potential staff; 1-2% excise tax on investment income by the IRS. Direct: No intermediary costs at all – the full amount goes to the church (aside from any minimal bank or platform fees if using those).
Flexibility & Scope	DAF: Very flexible within the charitable universe – one fund can support multiple churches/charities and allows strategic timing (you can bunch donations or hold funds). However, grants can only go to IRS-qualified charities (no direct aid to individuals). Foundation: Extremely flexible for large-scale philanthropy – can hire staff, run programs, make grants (even internationally or to individuals in certain cases), but with more complexity and oversight. For church giving, foundations provide control but may be more vehicle than needed. Direct: Immediate and personal – you can respond to needs in real time (drop money in the offering plate or donate online instantly). However, you can’t easily pre-fund and invest charitable dollars or give anonymously without an intermediary.
Succession/Legacy	DAF: You can name successor advisors (e.g., your children) to continue grantmaking after your lifetime, or designate your church (or other charities) to receive remaining DAF funds. It’s a relatively simple way to create a legacy of giving. Foundation: Can exist perpetually and become a family legacy vehicle. Future generations can run the foundation and continue supporting churches. This provides longevity but requires commitment to administration by someone over time. Direct: Legacy giving is done through estate planning – e.g., leaving a bequest or beneficiary designation to the church. There’s no structured fund to carry on giving year after year unless you set up an endowment at the church.

The good news is, you don’t have to choose one forever; you can have a DAF and still give some gifts outright. The key is understanding the trade-offs as we’ve laid out.

In summary, for most people supporting their church, a donor-advised fund offers a sweet spot: you get the same tax benefits as direct giving (since the church is a public charity), plus added advantages like anonymity and the ability to donate complex assets easily. A private foundation usually only makes sense if you’re dealing with very large sums and want the infrastructure to involve family in grantmaking with your own branding (but then you lose some tax efficiency and simplicity). Direct giving is perfectly fine for many situations – and in fact, if you want your church to have the funds immediately or you don’t itemize deductions at all, writing a check might be just as well. Some church donors use both: direct gifts for weekly offering or urgent needs, and a DAF for larger, strategic gifts (like end-of-year contributions or special campaigns).

The options aren’t mutually exclusive – you can have a DAF and still donate directly as needed. The key is to leverage the strengths of each approach wisely.

FAQs: Quick Answers to Common Questions

Finally, let’s address some frequently asked questions about donor-advised funds and church giving. These are the kind of questions that come up on forums or in conversations, distilled into brief answers:

Q: Can my donor-advised fund contribute to my church?
A: Yes. DAFs can grant to any qualified 501(c)(3) charity, and churches count as qualified charities. As long as the church meets IRS criteria as a church, your DAF can support it.

Q: Is giving to a church through a DAF tax-deductible?
A: Yes. Your tax deduction occurs when you donate to the DAF. Grants from the DAF to the church don’t give you another deduction, but the original contribution was deductible.

Q: Can I pay my church tithe or pledge using a DAF?
A: Yes. You can use DAF grants for tithes or pledges, provided you receive no personal benefit and the grant isn’t explicitly tied to a binding obligation. It should be a voluntary donation.

Q: Can a DAF be used to buy fundraiser tickets or church auction items?
A: No. DAF funds cannot pay for anything that yields a benefit to you. You’ll need to use personal funds for tickets, auction wins, or any donation that includes meals, goods, or services.

Q: Will my church know I am the one who gave through the DAF?
A: It’s up to you. You can choose to include your name and contact on the DAF grant, or you can give anonymously. If anonymous, the church only sees the sponsoring organization as the donor.

Q: Is there a minimum or maximum amount I can grant to a church from my DAF?
A: Generally no practical limit. Most DAF sponsors have a low minimum grant (often $50 or $100). There’s no maximum – you could grant your entire DAF balance. Just ensure the grant is for charitable use.

Q: Do I need an IRS letter from my church for the DAF grant?
A: No. The DAF sponsor handles the due diligence. You don’t need a receipt from the church since you aren’t claiming a deduction for that grant. The sponsor may require the church to have an EIN or proof of status, but you as the donor have no extra paperwork.

Q: Can I direct how the church uses my DAF grant?
A: Yes. You can include a recommendation or purpose (like “for youth ministry” or “building fund”). The church should honor it as it would any restricted gift. But you cannot direct it for the benefit of a specific individual.