Donor Advised Fund Rules for Grant Recommendations

At Crewe Foundation, we make it easy for you to turn generosity into action. Once you’ve contributed to your donor advised fund (DAF), you can begin recommending grants to support qualified charities across the country and around the world. We manage the administrative and compliance side so you can focus on giving with intention and maximum impact.

Understanding what’s possible and what isn’t helps you get the most out of your DAF. Below, we’ve outlined how we handle grant recommendations, what qualifies as a permissible grant, and how we work with you to make each distribution count.

What You Can Use Your DAF to Support

When you recommend a grant from your DAF, you’re asking us to distribute part of your fund to support a charitable organization. We carefully review each request to make sure it meets IRS regulations and our internal standards. If everything checks out, we’ll issue the grant on your behalf.

Common Ways to Use Your DAF at Crewe Foundation

Your DAF is a flexible tool for supporting a wide range of charitable efforts, on your terms and your timing. Here are some common ways our donors use their DAFs to make a meaningful impact:

Public charities recognized under Section 501(c)(3), including organizations focused on health, education, human services, the arts, and the environment
Religious institutions, such as churches, synagogues, and ministries
Disaster relief and emergency response efforts facilitated through qualified organizations
Scholarship programs, provided the fund is managed by an eligible charity and the donor or related parties do not control the selection process
U.S.-based charities with international reach, allowing you to support global causes through trusted domestic nonprofits
International charities, with additional due diligence through equivalency determination or expenditure responsibility (requires additional fee for processing and verification)
Private operating foundations, as long as the organization certifies its status and the grant does not jeopardize that classification
Fiscal sponsorships, where a public charity oversees an initiative on behalf of another group

We verify the organization’s eligibility and confirm the charitable purpose of each grant. Grants to newly formed organizations or international charities require additional documentation or review, which could extend processing time and fees. We’re here to guide you through those steps.

For International Grants Click Here

What You Cannot Use Your DAF To Support

To protect your fund’s tax-advantaged status, there are specific rules we must follow. That means there are some things your DAF can’t be used for, even if the intent is charitable.

You may not use your DAF to:

Pay for anything that results in a personal benefit, such as tickets to a gala, meals at fundraising events, memberships, or tuition (other than incidental benefit)
Fulfill a personal pledge or legally binding obligation (even if you plan to reimburse the fund). This includes written or verbal pledges, such as signing a pledge card or making a commitment at a fundraising event.
Directly support individuals or families
Make political campaign contributions or support lobbying activities

Even partial benefits are not allowed. For example, if you recommend a $5,000 grant to an organization hosting a benefit dinner where the value of the dinner is $200, the entire grant is disallowed even if you waive the meal or intend to pay for it separately. This is referred to as a “bifurcated” grant, and unfortunately, it still constitutes a private benefit under IRS rules.

We always recommend checking with us before recommending a grant that might include an event, recognition, or donor benefit. Our goal is to help you give confidently and without risk.

Grant Timing and Activity

While the IRS does not currently require DAFs to meet a minimum payout each year, we believe in keeping your fund active and engaged. Grantmaking is the heartbeat of charitable impact. We recommend grants to distribute a target of 5% of the DAF account value annually.

We encourage our fundholders to recommend grants on a regular basis. If your fund has been inactive for more than 36 months, we will reach out to discuss options and ensure alignment with your philanthropic goals. Continued inactivity could result in us initiating grant distributions from your fund to qualified charities aligned with your previous interests.

If life gets busy and you need support re-engaging with your fund, we’re here to help guide you through your next steps.

Granting Internationally

You can use your DAF to support international causes, but additional steps are required to comply with IRS rules. There are two approved paths:

Equivalency determination: We confirm that the international organization functions similarly to a U.S. public charity.
Expenditure responsibility: We require detailed reporting from the grantee on how the funds are used.

To make this process smoother, many donors choose to support international work through U.S.-based charities with global reach. These nonprofits often already meet all requirements and can distribute aid efficiently on your behalf.

We’re happy to advise you on the best route, depending on the organization and country involved.

Anonymous Giving and Recognition

You can choose whether to be acknowledged by name when a grant is made or to remain anonymous. We will honor your preference with every grant. If you want to remain unnamed, the grant will come from your DAF at Crewe Foundation without identifying you as the source.

Some donors prefer anonymity to avoid additional solicitations. Others prefer to build long-term relationships with the organizations they support. Whichever route you choose, we’re here to make sure your wishes are respected.

How We Review and Process Your Grant Recommendations

Here’s what happens when you recommend a grant:

Review: We confirm that the organization is an eligible 501(c)(3) public charity and that the purpose of the grant is charitable.
Compliance: We ensure that the grant does not result in any personal benefit to you or your family.
Approval: If everything checks out, the grant is approved by our team.
Disbursement: Funds are sent to the organization by check or ACH, along with a grant letter explaining the purpose and attribution (or anonymity).
Reporting: You can view your grant history through your fund’s online dashboard.

We maintain records of all grant activity, ensuring complete transparency for you and compliance with legal requirements.

Leaving a Legacy

One of the most meaningful aspects of a DAF is the ability to involve others in your giving. You can name as successor advisors your children, grandchildren, or anyone you trust to continue your philanthropic work after your lifetime. You may also leave instructions for how your fund should be granted out once you’re gone.

If you haven’t considered this yet, we’d be glad to walk you through legacy planning options.

Our Commitment to You

We’re not just here to process paperwork. We’re here to walk alongside you in your giving journey to help your philanthropic efforts become more meaningful and impactful. Whether you’re making your very first grant or considering a complex international gift, our team is ready to help.

We bring clarity to the rules, take care of the compliance, and give you the tools to make each decision with purpose. That’s what it means to give through Crewe Foundation.

Ready to Make a Grant Recommendation?

We’re here to help you take the next step. Log into your donor portal to recommend a grant today, or contact our team if you’d like to explore giving strategies, international options, or multi-year support.

Let’s build a lasting impact together.