A donor advised fund is a centralized charitable account that helps individuals, families, and businesses to efficiently distribute their charitable contributions.
The donor gives to a fund which is hosted by a charity (such as Fidelity Charitable) or their local community foundation. That entity will then distribute the funds to charities, as advised by the donor.
Technically, the organization hosting the fund has full discretion of the use of the funds. In practice, the donors control how the funds they contributed to the donor advised fund are distributed. There are benefits to donors who use such a fund, but we’ll leave all that to your tax advisor.
For more information on donor advised funds, we recommend the following resources: