A Donor-Advised Fund, or DAF, is an investment account where all the assets you invest go to charity. Anything you contribute to the fund — including cash, stocks, and cryptocurrency — is managed and invested by a sponsoring organization. Your contributions will grow tax-free, and over time you can recommend grants from your fund to qualifying charities.

When you contribute to a DAF, you can qualify for an income tax deduction for the amount you contribute in that tax year. You can choose which organizations you’d like to support and when those donations should be made.

Keep in mind that donations to a DAF are irrevocable. This means that once you contribute assets, you aren’t able to withdraw them and use them for a different purpose. They must be donated in support of a qualifying charity.