A Donor-Advised Fund (DAF) is a philanthropic vehicle that allows donors to make charitable contributions, receive an immediate tax benefit, and then recommend grants from the fund over time. When a donor contributes to a DAF, they deposit cash, securities, or other assets into a fund managed by a sponsoring organization, such as a community foundation or a financial institution's charitable arm. The donor immediately receives a tax deduction for the donation. The funds are then invested, and the investment growth is tax-free. The donor retains advisory privileges over the investment allocation and can recommend grants to qualified charitable organizations at their discretion. This setup provides donors with a flexible way to manage their charitable giving, allowing them to support various causes and organizations as they choose.