A Personal Finance Nerd’s Guide to Giving: Why I Opened a Donor-Advised Fund at 36

Today, most of that high school math knowledge is lost to the ether. I couldn’t tell you what a derivative is if my life depended on it. But I’ve channeled that part of my brain into a new obsession: personal finance. I’ve embraced my new identity as a personal finance nerd, spending a lot of time thinking about index funds, tax-advantaged accounts, the FIRE (Financial Independence, Retire Early) movement, and all that jazz.

My interest in personal finance has also melded with my long-held passion for philanthropy. For ten years I’ve fundraised for non-profits, and I studied ethics (and the ethics of giving) long before that. Giving to charity is incredibly important to me. Having been influenced by the principles of the effective altruism movement, I’m keen to do the most good I can by supporting the most effective charities.

These two parts of my life—the personal finance nerd and the dedicated fundraiser—led me to open a donor-advised fund at age 36, with a whopping initial investment of $0.

It wasn’t that I had a lot of money to burn—I am a millennial, after all—but I realized that a donor-advised fund (DAF) is a tax-smart and easy way to maximize, streamline, and even automate my giving. And it’s a tool that’s not just for the ultra-wealthy.

What is a DAF, in plain English?

Think of a donor-advised fund as your very own charitable investment account—like a simplified personal foundation without the administrative headache.

You open a DAF at a sponsoring non-profit, such as the charitable arm of a brokerage firm, a community foundation, or even GoFundMe. You give your new DAF a name. (This step makes you feel like a “philanthropist.”) Next, you fund your DAF by contributing cash, securities, or other assets—like crypto, real estate, or even that Monet you’ve grown tired of—and you usually get an immediate tax deduction.

You invest your DAF contributions as you like, for growth or preservation, within the range of options offered by your DAF sponsor. No matter how you invest the money—stocks, money market funds, ETFs—any investment gains will be tax-free.

When you feel inspired to give, your money is there, primed, poised, waiting for you. You simply recommend grants to the charities of your choosing, and your DAF sponsor handles the paperwork while you’re off living your life.

Here’s the DAF process at a glance:

• You open a DAF. You name it.
• You contribute assets, automating your contributions if you like.
• Your DAF sponsor issues you a tax receipt; you can claim a tax deduction.
• You invest your contributions.
• Your money grows tax-free.
• You recommend grants to your favorite charities.
• Your DAF sponsor disburses your grants.

The benefits of a DAF

If you’re out to maximize (or optimize) your giving, DAFs offer some distinctive advantages over direct giving.

From my perspective, the tax advantages are the biggest selling point. When you contribute to a DAF, you’ll generally receive an immediate tax deduction for the full amount. But that’s not all—your philanthropic dollars will grow tax-free. By setting aside money for charity in your DAF, you’re essentially protecting it from income tax and from capital gains tax. Which means, of course, that more of your money is available for you to give away.

DAFs are also convenient. Because your DAF acts as a kind of middleman between your contributions and your actual charitable gifts, you can put money in your DAF without having to give it to charity in the same tax year. This gives you a lot more flexibility when it comes to taking your tax deductions and managing your gifts. In a high income year, for example, you might want to “bunch” several years’ worth of contributions, take a large deduction, and drop yourself into a lower tax bracket for the year. Once that lump sum is invested in your DAF, you can distribute it to charity over the next few years, as you normally would—and the charity will get consistent, year-to-year support.

You can also automate your contributions, just as you can with a 401(k). This way, you can set it and forget it. It’s an easy way to maintain a consistent monthly budget while also making sure you meet your philanthropic goals.

DAFs can reduce the headache of giving, too. Say you want to donate stock to four charities. Instead of making four transactions—one to each charity—you can instead do the paperwork once, make a single stock donation to your DAF, and recommend four grants from there. You’d also get a single tax receipt from your DAF sponsor for the lump–sum contribution, rather than one receipt from each charity, so your taxes will be more streamlined. What’s more, your DAF sponsor will handle the logistics of grant-making for you, issuing checks and mailing them to the charities of your choice.

And since DAFs are irrevocable—once you put that money in, you’re not getting it back—it keeps you, well, committed. Your noble philanthropic intentions won’t be derailed by a shiny new car or a trip to Paris.

You want your generosity to do the most good, without a pile of paperwork or a stressful year‑end scramble. You also want to be smart about taxes so more of your money can help animals instead of getting lost to fees. DAFs help you give more easily, more strategically, and, often, more generously. Anyone can open a DAF—heck, you can do it with $0, as I did—so you can start small and grow your impact over time. DAFs help cut friction so more of my generosity reaches the front lines, and yours can too.

At THL, we’re holding corporations accountable to their promises, defending landmark animal protections like Proposition 12, and building coalitions that change how the world treats animals. Your strategic giving helps tip the scales toward a world where animals are treated as living, feeling beings—not commodities.

Recommending a grant to The Humane League

If you already have a DAF, today’s as great a day as ever to put it to work. Could you deploy 10% of your available funds to the causes you believe in? If you’re moved by sparing hens from horrific cages, ending cruel slaughter methods for chickens, and building a fairer food system, consider recommending a grant to The Humane League. We’ll leverage your generosity to end the abuse of animals raised for food.

If you don’t have a DAF, setting one up now means you’ll be ready to act the moment you feel called to help animals.

When you’re ready to give to THL, it’s a really simple process. You provide the gift amount and the following information to your DAF sponsor:

Legal name: The Humane League
Tax ID / Federal EIN: 04-3817491
Mailing address: PO Box 10476, Rockville, MD 20849

Please share your information with your grantee. If you’re comfortable, allow your name and email to be passed along so we can thank you and keep you updated on the change you’re fueling. If you are concerned about privacy, please know that we never publish names of our supporters without their permission. Anonymous gifts are appreciated too—sharing simply helps us extend our appreciation and share your impact with you. You can let us know about your grant by emailing Caroline Mills at cmills@thehumaneleague.org.

Consider recurring grants. Your steady, consistent support will power long‑term campaigns, legislative pushes, and rapid responses when corporations backslide on promises to animals.

Pair your DAF with moments that matter. Align grants with DAF Day, World Day for Farmed Animals, Giving Tuesday, or whenever you see a campaign or matching challenge that moves you!

Naming Beneficiaries of your DAF

While you’re logged into your account, consider naming The Humane League as a beneficiary of your DAF. Your funds are already earmarked for charity, so taking a few minutes to ensure that they go to THL solidifies your legacy of compassion for farmed animals. If you do choose to name THL as a beneficiary, please let us know at legacy@thehumaneleague.org, and we’ll welcome you to our Legacy Society!

FAQs

• Are DAFs only for major donors? No—many sponsors have low or no minimums, and you can start small and add over time.
• Can I grant to any charity? You can recommend grants to qualified public charities in good standing, including The Humane League.
• Do DAFs lock my money away? Funds are forever dedicated to charitable purposes, but you decide when and where to grant.