Donor Advised Fund

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DEFINITION of 'Donor Advised Fund'

A private fund administered by a third party and created for the purpose of managing charitable donations on behalf of an organization, family, or individual.

INVESTOPEDIA EXPLAINS 'Donor Advised Fund'

Donor advised funds have become increasingly popular. They offer the donor ease of administration, while still allowing him or her to maintain significant control over the placement and distribution of charitable gifts. Companies are able to offer this service to clients with fewer transaction costs than if the funds were handled privately.

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