Donor Advised Funds

Donor-Advised Funds (DAFs) are a popular and flexible way for individuals to support UC San Diego through charitable giving. This page explains how DAFs work, how gifts are recorded, and the specific IRS rules that apply. Departments and fundraisers will also find guidance on acknowledgments, restrictions on benefits, and how to coordinate with Gift Services when accepting DAF contributions.

About Donor Advised Funds

A Donor-Advised Fund (DAF) is a charitable giving vehicle established by a nonprofit organization, known as a sponsoring organization, that allows a donor to make a tax-deductible contribution and recommend how the funds should be distributed to qualified charities over time.

How DAFs Work

When a donor contributes to a DAF, they make an irrevocable charitable gift to the sponsoring organization (e.g., Fidelity Charitable, Schwab Charitable, Morgan Stanley, the Jewish Community Foundation, or the San Diego Foundation). The donor receives a tax deduction at the time the gift is made to the DAF, not when the funds are distributed to a beneficiary organization like UC San Diego.

Though the DAF becomes the exclusive legal property of the sponsoring organization, the donor may recommend distributions to qualified charities. These recommendations are subject to the sponsoring organization's approval and internal review process. Once approved, the sponsoring organization issues a payment—often referred to as a “grant”—to the recipient organization.

Despite the use of the term “grant,” these payments are considered charitable gifts for classification purposes because they are made without expectation of goods, services, or deliverables in return.

Recording DAF Gifts at UC San Diego

When UC San Diego receives a gift from a DAF:

• The sponsoring organization is recorded as the legal donor in our donor database.

• The individual(s) who recommended the gift may receive recognition credit but not legal credit.

• No tax receipt is issued by UC San Diego, as the donor has already received their deduction from the sponsoring organization.

• A formal acknowledgment may still be sent, in accordance with Fund Stewardship acknowledgement protocols.

IRS Rules and Important Considerations

There are specific IRS restrictions governing the use of DAFs:

• DAF gifts may not be used to fulfill a legally binding charitable pledge.
  If a donor has made a personal pledge, a DAF contribution cannot be applied toward that commitment.

• DAFs may not receive any tangible benefits in exchange for a gift.
  This includes event tickets, meals, parking, or any donor recognition items of value.
  
  If a donor wishes to support an initiative that typically includes such benefits, they must formally waive all benefits in writing. This documentation must be submitted to Gift Services before the gift can be accepted.

UC San Diego Foundation Donor Advised Fund

The UC San Diego Foundation (UCSDF) administers DAFs which allow donors to make recommendations for allocations only to funds within the UCSDF or the campus. 

If your donor has expressed interest in opening a DAF with the UC San Diego Foundation, please contact the Office of Planned Giving at giftplanning@ucsd.edu or by phone at (858) 534-2249.