A donor advised fund, or DAF, is one of the easiest ways to organize your charitable giving during your lifetime. But what happens to your DAF after you are no longer here to recommend grants? Many donors are surprised to learn that without a plan in place, the answer is decided for you—not by you. The good news is that creating a succession plan for your DAF is simple, and it is one of the most meaningful ways to make sure your generosity continues exactly as you intend.
What Is a DAF Succession Plan?
A succession plan simply tells your DAF sponsor what should happen to the assets remaining in your fund after your lifetime (or, for a jointly held fund, after the lifetime of the last surviving advisor). Every DAF sponsor asks new account holders to make this decision when the fund is established, and most allow you to update it at any time as your wishes or family circumstances change.
There is no downside to making a DAF succession plan—you can revisit your beneficiaries or successor advisors whenever your wishes or family circumstances change.
Three Ways to Shape What Happens Next
Check with your DAF sponsor to learn about your options. Depending upon their policies, you may be able to:
- Name charities directly. You can direct that the balance remaining in your fund be distributed immediately to Woodland Park Zoo and/or other organizations you have supported during your lifetime.
- Name a successor advisor. A spouse, child, or other loved one can take over management of your DAF, recommending grants to causes close to their own hearts. Keep in mind that successor advisors are not required to share your philanthropic priorities and cannot be bound to supporting your preferred charities.
- Do both. You can split the difference—directing a portion of your fund to the charities you choose, while leaving the remainder for a successor advisor to manage and distribute
over time.
Making Woodland Park Zoo Part of Your Plan
Consider naming Woodland Park Zoo as a full or partial beneficiary of your DAF. This costs you nothing today, involves no legal fees, and can be changed at any time simply by contacting your fund sponsor and updating your beneficiary designation form. It is one of the simplest ways to leave a lasting legacy of support for the work you believe in.
How to Get Started
Contact your DAF sponsor and ask for a beneficiary designation or succession plan form. Most sponsors make this available online, and completing it takes only a few minutes. If you would like, we would be glad to provide our organization’s legal name, tax identification number, and any language you may need to include Woodland Park Zoo as a beneficiary of your fund.
A donor advised fund is already a wonderful tool for simplifying your giving today. With a simple succession plan, you can be confident it will continue to make a difference well into the future.