Wealth management

From building wealth to sharing it 

You’ve spent years building your wealth. Now you’re ready to give back to the causes you care about. But charitable giving comes with its own complications—tracking donations, managing taxes, deciding when and how much to give. What once seemed simple—writing a check—now involves capital gains considerations, tax timing strategies, and keeping records across multiple organizations. 

A donor-advised fund, or DAF, changes this by making generosity simple and more strategic. It’s a solution designed to bring planning, simplicity, and ease when it comes to donating your assets.

What is a DAF—and how does it work? 

A DAF is a tax-deductible financial account for charitable giving. Think of it as a charitable investment account that you control. 

You contribute cash, stock, or other assets and receive an immediate tax deduction in most cases. Those contributions become an irrevocable gift to the sponsoring charity—for the TIAA DAF Program, that’s Charityvest, a 501(c)(3) public charity. You can’t withdraw the contributions for personal use, but you can recommend which organizations receive grants and when. And while you decide where to give, you can work with your TIAA advisor to invest those contributions, allowing your charitable dollars to potentially grow (tax-free) before you grant. 

DAFs empower you to give back with a seamless process. Here are four other key benefits they provide. 

1. Consolidate giving in one place. 

Donors who support multiple charities often have difficulty keeping track of all the checks, receipts, and records. A DAF simplifies giving into a single account, making it easier to see your charitable impact at a glance. Plus, you get only one annual tax acknowledgement when the time comes to report deductions. 

2. Give stock or other assets.

By donating appreciated stock or mutual funds directly to your DAF instead of selling them first, you avoid paying capital gains tax while still claiming a deduction for the full market value. 

3. Give now, grant later. 

DAFs offer the ability to separate the tax benefit from the actual grant. Whatever you contribute, you receive an immediate tax deduction for that year, allowing you to reduce taxes when you earn more. However, those funds remain in your account and can be granted to different organizations over multiple years. Plus, the funds can be invested and grow tax-free while you wait. 

4. Establish a giving legacy.  

Giving back means supporting the causes and organizations that mean so much to you and your family. A DAF allows you to designate loved ones as successor advisors to continue your charitable legacy. This turns generosity into a tradition as they can then resume making charitable donations from the fund. Or you can name organizations as beneficiaries to receive all or part of the account’s balance. 

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When a DAF makes the most sense 

It’s important to note that DAFs aren’t reserved exclusively for the ultra-wealthy or those with complex estates. They’re designed for anyone who wants a thoughtful and organized approach to charitable giving. However, certain financial situations make DAFs particularly valuable.

DAFs can help you navigate a windfall year. Maybe you received a year-end bonus, sold a business or property, or had a larger retirement distribution than expected. When you face unusually high taxable income, you can donate several years’ worth of giving to your DAF in one tax year. You claim the entire deduction immediately. Then you distribute the funds to charities over time. For families, DAFs create a pathway to involve children in philanthropy. And for group efforts, multiple donors can contribute to one DAF account for larger, collaborative grants. 

A seamless approach  

Similar to how DAFs streamline giving back, setting one up at TIAA is a straightforward process. 

TIAA DAFs are available exclusively to TIAA Wealth Management clients. Your TIAA advisor helps you decide if a DAF fits your charitable goals and overall wealth strategy. Then, they help you select how to invest your contributions, in alignment with your risk tolerance, while you decide where to give. Your charitable giving, retirement planning, tax strategies, and estate planning all stay under one roof—a complete approach to growing and sharing your wealth. 

What makes TIAA DAFs distinctive is the modern, streamlined experience. Account holders can recommend grants to 1.6 million IRS-qualified charities. Grants are processed quickly—delivered to charities via PayPal daily or by check weekly. Your charitable dollars are invested in TIAA-endorsed portfolios designed to enhance your long-term philanthropic impact. Plus, the TIAA DAF program is designed to be accessible—contributions and grants start at just $15.

We’re here to help

To learn more about DAFs, please visit our product home page. To discover how a DAF could fit into your financial plan, talk with your TIAA Wealth Management advisor. Don't yet have an advisor? Schedule an appointment.