Donor Advised Funds

What is a Donor Advised Fund?

A donor advised fund (DAF) is a charitable fund type that offers flexibility and involvement in grantmaking. A DAF may be endowed or non-endowed and can adapt to changing financial and charitable priorities making it an ideal option for an individual, household, family, or business with a wide range of philanthropic goals.

To establish a DAF, the donor makes a tax-deductible contribution to the East Tennessee Foundation (ETF). Donors can then recommend grants to 501(c)(3) public charities, units of government, public educational institutions, and in some instances, houses of worship or tax-exempt private foundations. The ETF stewards the grant recommendation through a vetted due diligence process, which includes verifying compliance with federal law and nationally recognized charitable standards, then issues the grant.

Why Create a Donor Advised Fund at the East Tennessee Foundation?

“Our Donor Advised Funds showcase the exceptional partnerships our donors have with the Foundation,” said Keith Barber, President and CEO of the East Tennessee Foundation. The collaboration that is possible between ETF and a donor via a donor advised fund, Keith believes is vital to the Foundation’s mission, stating that “trusting ETF to steward their investment and working through their DAF, a donor is provided with a mechanism to stimulate impactful philanthropy in ways that are personal to them. This philanthropical relationship requires the donor to be mindful of needs in our community and then provides them with the opportunity to act to support those needs, making ETF’s impact even stronger.”

The ETF can help donors consider their giving options and will even assist in identifying grant opportunities if needed. A DAF grant can be issued for general purposes, or a purpose can be identified by the donor for a specific program or use. The grant can also be on behalf or in honor or memory of a loved one, and if the donor would like the grant to be made anonymously, the Foundation will ensure anonymity while also ensuring the purpose of the grant is communicated as intended.

Currently, the ETF holds 124 donor advised funds which make up approximately 49% of the Foundation’s total grantmaking, impacting areas such as arts and culture, education, human services, community improvement, and much more in East Tennessee and nationwide. One such DAF, the Consoli Family Foundation Fund established in 2008, has allowed Richard and Leslie to contribute to the causes that matter most to them. “For over a decade, our DAF with East Tennessee Foundation has been an integral part of our philanthropic strategy. One of the things we appreciate most about having a DAF is the flexibility it offers. [It] has allowed us to stay engaged with our community and make a meaningful impact. Specifically, at ETF, the level of personalized service and local expertise has been invaluable, helping us target our giving effectively.”

Interested in establishing a DAF with the ETF? Please connect with Traci Sisson, Assistant Director of Stewardship & Donor Relations at ts*****@*tf.org or 865-524-1223 ext. 112.