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What's a donor-advised fund and how does it fund splash pads?
Quick answer
A donor-advised fund (DAF) is a charitable giving vehicle: a donor contributes assets, gets an immediate tax deduction, then 'recommends' grants from the fund to 501(c)(3) charities over time. DAFs hold $230B+ nationally; recommending grants to your splash pad takes a phone call.
Donor-advised funds (DAFs) are the fastest-growing US charitable vehicle, holding $230+ billion in 2024. Donors contribute cash, appreciated stock, real estate, or business interests to a DAF held at a community foundation, Fidelity Charitable, Schwab Charitable, Vanguard Charitable, or a religious sponsor. They get an immediate tax deduction and then 'recommend' grants from the fund to 501(c)(3) public charities at any pace — there's no required payout timeline. For splash pads, the implication is enormous: many of your donors already have DAFs they're underutilizing. Make sure your Friends-of-Parks 501(c)(3) is searchable on Candid (formerly GuideStar) — DAF sponsors verify charity status through Candid before processing grants. Then, in capital-campaign asks, explicitly say 'consider recommending a grant from your donor-advised fund.' DAF gifts often exceed cash gifts by 3-5x because the donor isn't writing a check from current cash flow. Provide DAF-recommendation language and your EIN on every fundraising piece.