Donor-Advised Funds
With a donor-advised fund (DAF), you can make a gift now, receive a current income tax deduction, and retain the flexibility to recommend gifts later when the time is right.
You may find that using a DAF provides a simple, meaningful way to benefit Maine Maritime Academy and other charities you support. Consider the following:
- You establish a DAF with a single donation to the sponsoring organization. You can make additional donations later if you wish. Most DAFs will accept assets beyond cash and securities, sometimes including real estate or closely held stock.
- The sponsoring organization then owns those assets and administers the fund—you no longer need to manage the money.
- This arrangement allows you to qualify for an immediate charitable income tax deduction for the amount contributed to the DAF, even though the money hasn’t been distributed to charity yet.
- You have advisory privileges, meaning that at some point in the future, you can recommend (but not require) gifts to be distributed to specific charities.
Don’t overlook succession planning for your DAF
It’s important to ensure that the money you set aside for charitable giving supports those charities that are meaningful to you and your loved ones. Check to see if your DAF allows you to name your spouse, child, or another person as a successor advisor after you pass, or designate a qualified charity to receive final grant distributions of any remaining assets.
Evaluate the fit.
Donor-advised funds may be a particularly good option to consider if you:
- Want to make a large, tax-deductible contribution this year to offset increased income
- Haven’t yet fully established your charitable goals, so would like flexibility in making future gifts
- Would find it beneficial to segment your charitable funds from your other assets
- Would like to donate a more complex non-cash asset that your intended charitable recipient(s) cannot accept
See how it works.
Five years ago, Steve earned a significant year-end bonus. He knew he wanted to use that money for a charitable purpose, but he wasn’t yet sure where he wanted to have an impact, and he had little time to decide. He chose to donate the full amount to a DAF, which ensured an immediate and much-needed charitable income tax deduction. The sponsoring organization invested the assets and retained ultimate authority over any distributions.
This year, Steve’s nephew graduated from Maine Maritime and got a good job within a month. Steve uses his advisory privileges to recommend a grant from the DAF to MMA to help fund scholarships going forward. The sponsoring organization distributes the recommended gift to us (they are not obligated to do so, but in most cases, they will follow Steve’s recommendations).
Consider your timing.
If you want to qualify for a charitable deduction this year, you should initiate your gift by Friday, December 12, 2025.
We can help.
We can provide you with more information about donor-advised funds and grants to Maine Maritime.