How do I create a new Donor Advised Fund (DAF) for my client (the Donor)?
If you are ready to begin please visit our onboarding application process.
Complete your firm details and select the custodian where the DAF is to be held.
1. Is the DAF for Corporate or Individual?
- Corporate DAFs – The adviser completes the details of the company wishing to set up the DAF and ensuring there is at least one person managing the DAF.
- Individual DAFs – The adviser completed the Donor details and answers the question of whether the DAF has a joint Donor, if so completes their details.
- Benefits of having a Corporate DAF:
- Saves the corporate the cost of having to set up their own charity and finding trustees.
- Saves the corporate the ongoing governance time and costs of complying with charity regulation and HMRC.
- The corporate name can be used as the Charity Foundation name and donations can carry the name of the foundation and be used in reports, website.
- Any registered UK Charity can have a donation.
- Additional philanthropic and due diligence services.
- Benefits of having a Corporate DAF:
2. Philanthropic fact find.
- Does the Donor require philanthropic advice? If yes, then our philanthropic adviser will be in touch to arrange a discussion with you and your client.
- What purposes interest the donor? Examples such as animals, children, healthcare, environment.
- Are there any charities the donor would like to give grants to? If so, please provide the most important charities to the client.
- How frequent does the donor wish to make grants? This can be annually (could be on the Donor’s birthday or other significant date), biannually, quarterly, monthly or ad hoc.
3. Are there any Additional Grant Representatives?
- What are Additional Grant Representatives?
- A Donor can choose whether to have one or two members of family to be part of their charity foundation and have the capacity to make Grants from.
- Additional Grant Recommenders are able to request a Grant to be made, however it will need authorisation from the Donor before the Grant is made.
4. Successor of the DAF
- This can be a family member of the Donor, including one of the Additional Grant Recommenders, or the Donor can choose to have the assets of the Charitable Foundation transferred to a UK registered charity. Please ensure the Charity name and number is completed in the application form.
- What happens if the Donor chooses not to have a successor?
- In this instance it will be down to the TCF Trustees to decide on what happens with the DAF and the charity/ies which receives Grants, in line with the Donor’s philanthropic objectives.
- What happens if there’s more than one Successor?
- The Donor can choose to have up to 4 Successors, the Donor will state which order they want the Successors to each have their own 3 year cycle of managing the DAF, they do have the choice of missing their turn if they wish too. When there’s one Successor left then they must say if they wish to add another Successor or for the DAF to be managed by the TCF Trustees to carry out the wishes of the Donor.
- There will be an Additional Successor form to complete for each Successor.
- The Donor can choose to have up to 4 Successors, the Donor will state which order they want the Successors to each have their own 3 year cycle of managing the DAF, they do have the choice of missing their turn if they wish too. When there’s one Successor left then they must say if they wish to add another Successor or for the DAF to be managed by the TCF Trustees to carry out the wishes of the Donor.
- What happens if the Donor chooses not to have a successor?
Once the application is submitted TCF will send the completed application form to the Donor and Additional Grant Representatives via our electronic signature system for them to check the application form and sign. On return of all signatures this will be forwarded onto the Trustees for sign off.
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