Donor-Advised Fund Agreement Template

What Is the Donor-Advised Fund Agreement?

A donor-advised fund agreement establishes your relationship with a sponsoring organization that will hold, invest, and distribute charitable assets according to your recommendations. You contribute cash or securities, receive an immediate tax deduction, and then recommend grants to qualified charities over time.

This agreement defines who can recommend grants, what assets can be contributed, how fees are calculated, what happens when you die, and how to avoid private benefit violations that could jeopardize your tax deductions.

 

 

Is This Donor-Advised Fund Agreement Right for You?

You need this agreement if you're:

• Establishing a DAF with a community foundation or commercial sponsor
• Contributing appreciated securities to maximize tax deductions
• Creating a multi-generational charitable giving vehicle
• Offsetting large capital gains from business sales or stock options
• Setting up structured philanthropy with family members
• Converting private foundation assets to a donor-advised fund

You definitely need this agreement if:

• You're contributing assets worth $25,000 or more to a DAF
• You want successor advisors to control grants after your death
• You're negotiating fee structures with multiple DAF sponsors
• You need investment advisory rights for a large fund balance
• You're contributing complex assets like real estate or private stock

 

 

Why Thousands Trust Legal GPS Templates

Save Money

Estate planning attorneys charge $1,500-$3,500 for custom DAF agreements. Get the same legal protection for $35.

Save Time

Download instantly and complete in under an hour. No scheduling delays or back-and-forth attorney revisions.

Look Professional

Traditional legal formatting sponsoring organizations and financial institutions expect from properly structured charitable vehicles.

Keeps You Out of Court

Private benefit prohibitions, pledge fulfillment restrictions, and successor advisor provisions prevent IRS violations that could disallow your charitable deductions.

 

 

 

Get Protected in 3 Simple Steps

Step 1: Secure Checkout

Complete your purchase through our encrypted payment system. Instant access to your template.

Step 2: Instant Download

Download your Word document immediately. Compatible with Microsoft Word and Google Docs.

Step 3: Fill In the Highlighted Fields

Complete the bracketed sections with your fund details and successor advisor designations. Review with your tax advisor before signing.

 

Frequently Asked Questions

Can I use this template multiple times?

Yes. Once you purchase this template, you can use it to establish multiple donor-advised funds with different sponsoring organizations or create additional funds within the same sponsor. You can also modify terms as your charitable giving strategy evolves.

Is this contract legally binding?

Yes. Once signed by you and the sponsoring organization, this agreement becomes legally binding and governs all contributions, grant recommendations, and distributions from your donor-advised fund. It also defines the sponsoring organization's obligations and limitations.

What's the difference between a DAF and a private foundation?

With a donor-advised fund, you transfer complete ownership to a sponsoring organization and retain only advisory privileges. With a private foundation, you maintain legal control through a board of directors. DAFs offer higher tax deductions and lower administrative costs, while foundations provide more control and flexibility.

Can I deduct my contributions immediately?

Yes. Contributions to donor-advised funds are tax-deductible in the year you make them, even if you don't recommend grants to operating charities until years later. Cash contributions are deductible up to 60% of adjusted gross income; appreciated securities up to 30%.

What happens if the sponsoring organization denies my grant recommendations?

The sponsoring organization has legal authority to deny any recommendation that doesn't comply with IRS rules, violates their policies, or would provide impermissible private benefit. However, denial is rare for straightforward grants to qualified public charities. Most denials involve attempts to fulfill personal pledges or benefit related parties.

Can I change my successor advisors after signing?

Yes. Most donor-advised fund agreements allow you to update successor advisor designations at any time by providing written notice to the sponsoring organization. Check the specific amendment provisions in your agreement and the sponsor's policies.