Do you DAF? If you aren’t a big investor, you may not recognize this acronym. To help you understand this charitable giving option, and decide if it’s right for you, we recently talked to Brad Tuininga, Vice President of Philanthropy at the Whatcom Community Foundation. Here’s what we learned:

Wild Whatcom: What exactly is a donor advised fund (DAF)?

Brad (WCF): A Donor Advised Fund (DAF) offers a streamlined, flexible, and tax-efficient way to support the causes you care about. By establishing a DAF with Whatcom Community Foundation or another qualified charitable sponsor, you make an irrevocable contribution of cash, appreciated securities, real estate, or other assets. As the fund advisor, you retain the ability to recommend grants to eligible nonprofit organizations at your convenience. Your contributions may be eligible for immediate tax benefits, and you can take time to thoughtfully plan your giving strategy. WCF handles the administrative and compliance responsibilities, allowing you to focus on your philanthropic goals.

Wild Whatcom: Is there a minimum amount needed to start a DAF? How about to get the tax benefits?

Brad (WCF): With WCF, the minimum to open a (non-endowed) DAF is $5,000, For an endowed DAF, it’s $10,000. There are no minimums for potential tax benefits.

Wild Whatcom: How does an endowment DAF differ from a standard DAF?

Brad (WCF): An endowment means it’s managed in perpetuity; the original contribution(s) remain invested in the fund, and only earnings are disbursed (generally 4-5% annually). Endowments are good for people interested in leaving a legacy and/or providing ongoing support for organizations or causes they care about over the long-term.

Wild Whatcom: How does working with Whatcom Community Foundation differ from working with national firms like Fidelity and Schwab, or another entity like National Philanthropic Trust (NPT)?

Brad (WCF): There are many reasons that establishing your donor advised fund with Whatcom Community Foundation is a great option:

WCF is your local philanthropic partner providing expertise, insights and deep knowledge of local and regional nonprofits and community needs. While donors are in control of how their DAF is distributed, many donors look to WCF for advice and guidance on how their philanthropic dollars can have the greatest impact.
WCF offers simplicity and flexibility. Donors can pool their charitable giving in one year and then disburse those dollars whenever they wish. A Donor Advised Fund is also a good way for a donor to maintain anonymity, if that is important to them. WCF does not require or unduly influence fund holders with where or how frequently they make grant recommendations from their DAF.
When you decide where you want your disbursement to go, WCF will confirm the selected charities are in good standing; we also run a ‘hate screen’, to make sure they are not involved in activities that promote hate against any people or group. If anything comes up in our due diligence review, we discuss our findings with the donor to determine the best path forward.
WCF’s fees on non-endowed Donor Advised Funds begin at 2% of the funds balance; this may be a little more than a commercial firm, but the fees paid to WCF are an extension of your philanthropy, going directly back into community through our comprehensive philanthropic and nonprofit support activities locally and regionally.
On average, WCF facilitates disbursement of nearly 15% of all philanthropic dollars that flow through us. This is significantly higher than private foundations who are only required to distribute 5% of their assets.

Wild Whatcom: What should a donor do to ensure their money gets disbursed in a timely fashion, and goes to the causes they care about?

Brad (WCF): Ensuring that your DAF benefits the nonprofits and causes you about is simple; you choose the specific charities and disbursement amounts yourself by using our secure online portal or by emailing WCF staff. We will email you confirmation when your grant is made

Wild Whatcom: What happens to the funds in a DAF if the donor doesn’t give explicit instructions for distribution?

Brad (WCF): Donors have the right to distribute money from their DAF as frequently (or not) as they wish. If a DAF becomes inactive, WCF staff will offer support and/or guidance to encourage support for timely community needs; however, donors are not required to make distributions with any frequency and can choose the time that is right for them.

For donors who want to plan legacy giving by bequeathing funds to WCF, we also offer the Madrona Society. This option allows donors to consolidate their philanthropy in their will or trust document by naming WCF as the beneficiary of their philanthropy. WCF staff then partner with the individual or family to document a Bequest Intention Agreement that details the organizations, funds, projects or program they would like to support through their estate. The Bequest Intention Agreement can be updated at anytime and there is no cost associated with making these changes.

Want to learn more? Here’s a great DAF one-pager from Brad and Whatcom Community Foundation.

For a deeper dive, including the significant growth of DAFs nationwide, whether regulation is keeping up, and problematic aspects of fund distribution, read The Independent Report on DAFs (April 2025)

Interested in donating to Wild Whatcom from your DAF?Use the DAF Pay option on our donation page to donate from 20 different DAF managers, or initiate your donation directly from your DAF account. If you already have a DAF with WCF, you can make a grant today using the online portal or contact Brad to start your grant.