Two years ago, our family established the David and Heather Ohs Charitable Fund, a Donor Advised Fund (DAF), at the Montana Community Foundation. While the Montana Endowment Tax Credit was a helpful incentive that offset our state income taxes, the most meaningful reason we opened a DAF was to encourage second-generation giving by creating a structured way to engage our teenage daughters in philanthropy.

How a DAF Encourages Multi-Generational Giving

1. Family Engagement

DAFs allow families to pool their resources and give together. Children or grandchildren can take part in grantmaking by serving as fund advisors or successor advisors, helping continue the family’s philanthropic legacy.

2. Succession Planning

Donors can create a clear succession plan by naming family members as advisors to oversee the fund and make grants after their passing, ensuring their charitable vision endures.

3. Shared Mission and Values

Families can develop a shared mission statement for their DAF, guiding charitable giving and aligning it with their collective values.

4. Flexibility and Ease

DAFs offer greater flexibility and less administrative complexity than private foundations, making it easier for families to stay engaged across generations.

5. Building a Legacy of Giving

By involving younger generations early, DAFs help cultivate lifelong habits of generosity and community investment. Through this process, families play an active role in shaping Montana’s future through giving, ensuring a lasting impact that extends well beyond their own lifetime.

If are you interested in learning more about MCF's Donor Advised Funds, please contact me at 406-671-9843 or heather@mtcf.org