Foundation News

Advantages of Donor Advised Funds

December 05, 2023

Our Gift & Estate Planning Director, Heather Ohs, breaks down the advantages of Donor Advised Funds.

Donor Advised Funds (DAF) are growing in popularity in American households. If you live in and give in Montana, the benefits are even better.

The Montana Endowment Tax Credit adds an additional advantage. By establishing a DAF in Montana, families are eligible for a tax credit of up to 40% of their charitable contributions, with a maximum credit of $10,000 for an individual and $20,000 as a couple. This credit helps offset Montana state income tax owed, thereby offering significant savings for families. It's a win-win!

Moreover, a DAF provides flexibility in charitable giving. Families can recommend grants to their favorite nonprofits over time, maintaining their involvement in decision-making and ensuring funds are distributed efficiently and effectively. This flexibility allows families to respond to evolving community needs while engaging younger generations in philanthropy and instilling charitable values.

Another advantage is the potential to grow the funds within the DAF over time. By investing the contributions, families can grow the principal amount, leading to larger charitable grants in the future. This approach allows families to create a lasting philanthropic legacy and perpetuate their giving beyond their lifetimes.

Additionally, a DAF ensures privacy in charitable giving. Unlike direct donations, which are publicly disclosed, contributions to DAFs offer anonymity if desired, protecting personal financial information and allowing families to support causes without attracting unnecessary attention.

A Donor Advised Fund offers families a robust tool to optimize their charitable giving. Through the utilization of the Montana Endowment Tax Credit, families can maximize tax savings while strategically supporting the causes they believe in. With flexibility, potential for growth, and privacy, a DAF empowers families to create a lasting impact and engage future generations in philanthropy.

Want to learn more about a Donor Advised Fund? Contact us at or (406) 443-8313. We would love to help you explore your options.