Donor-Advised Funds (DAFs) have become one of the most popular charitable giving tools in the United States, and for good reason. They are simple, flexible, tax-efficient, and rewarding to use.

Many donors enjoy recommending grants to their favorite charities throughout their lifetime while involving children and grandchildren in family philanthropy. But have you considered what will become of your donor-advised fund in the future? For many donors, the answer is, “Not yet.”

Just as retirement accounts, life insurance policies, and other financial assets require beneficiary designations, your donor-advised fund deserves thoughtful planning as well. The decisions you make today can shape your philanthropic legacy for generations to come.

A donor-advised fund is intended for charitable purposes. Yet many account holders never review the succession options available through their sponsoring organization. Without clear instructions, family members may be left making decisions on your behalf, and the charitable priorities that matter most to you may not be carried out as you intended.

This is why DAF Month, October, is a great time to review your account and consider your long-term plans.

Most donor-advised fund sponsors offer several options for continuing your charitable legacy:

• Name successor advisors. Family members may continue recommending grants from the fund after your lifetime.
• Create a multi-generational family philanthropy fund. Children, grandchildren, or other loved ones may be given ongoing advisory privileges.
• Designate charitable beneficiaries. All or a percentage of the remaining fund balance may be distributed to one or more charities.
• Combine approaches. Some donors allow family members to advise grants for a period of time, after which the remaining balance is directed to charitable organizations.

Many donors choose to designate charities as beneficiaries of all or a portion of their donor-advised fund. Because these assets have already been dedicated to charitable purposes, this can be an especially simple and meaningful way to extend your philanthropic impact. Naming one or more charities as beneficiaries helps ensure that the causes you care about continue to benefit from your generosity long after your lifetime.

For Friends of Acadia supporters, a donor-advised fund can become another way to leave a lasting legacy for Acadia National Park. By naming Friends of Acadia as a beneficiary of all or a percentage of your fund, you can help ensure that future generations experience the same trails, carriage roads, scenic vistas, wildlife habitat, and educational opportunities that make Acadia such a special place.

Your gift can support conservation, restoration, education, stewardship, and visitor experiences for years to come.

• Have I completed a successor or beneficiary designation for my DAF?
• Do my family members understand my charitable values and intentions?
• Would I like to leave a percentage of my DAF to one or more favorite charities?
• When was the last time I reviewed my DAF succession plan?

Many people regularly review their wills, trusts, retirement accounts, and insurance policies, yet overlook their donor-advised funds. A quick review of your DAF beneficiary and succession designations may help ensure that your charitable legacy reflects your values and supports the causes that matter most to you.

Whether your goal is to involve future generations in philanthropy, support the charities you cherish, or create a combination of both, taking a few minutes to review your donor-advised fund this September can help ensure your charitable legacy reflects your values and continues making a difference for years to come.

Important: This material is for informational purposes only and should not be considered tax, legal, or financial advice. Individuals should consult their own professional advisors regarding their specific circumstances.