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How to Get Started with a Donor-Advised Fund with Paramount Impact

What Is a Donor-Advised Fund?

A Donor-Advised Fund (DAF) is a charitable giving vehicle that allows individuals, families, or organizations to make tax-deductible contributions to a 501(c)(3) public charity, like Paramount Impact, and recommend grants to qualified nonprofits over time. With a DAF at Paramount Impact, a 501(c)(3) public charity founded in 2024, you can support causes you care about—such as education, community development, or aid for underserved populations—while enjoying immediate tax benefits and flexible giving options. Paramount Impact simplifies the process, works with your professional advisors, and ensures your DAF integrates seamlessly into your legacy plan, making it an ideal tool for strategic philanthropy.

Steps to Start a Donor-Advised Fund with Paramount Impact

Follow these steps to establish a DAF with Paramount Impact and begin your charitable giving journey:

  1. Submit an Application Online
    Visit https://www.paramountimpact.org/daf and complete the Donor-Advised Fund application form. Provide details about your philanthropic goals, preferred fund name (e.g., “Smith Family Fund”), and any professional advisors (e.g., financial planner, estate attorney, or CPA) you’d like us to collaborate with. This application helps us understand your vision and ensures alignment with Paramount Impact’s mission to empower communities through education, philanthropy, and support for groups like individuals with disabilities or those experiencing poverty.

  2. Discuss Your Goals with Paramount Impact
    After reviewing your application, our team will contact you to schedule a consultation. During this discussion, we’ll:

    • Explore your charitable objectives, such as supporting specific causes or creating a multi-generational legacy.

    • Coordinate with your professional advisors (if applicable) to integrate the DAF into your financial, tax, and estate plans, ensuring it aligns with your overall wealth management strategy.

    • Answer questions about the DAF process, investment options, fees, or legacy planning, including naming successors or charitable beneficiaries to continue your giving after your lifetime.

    • Confirm that your DAF complies with IRS requirements for 501(c)(3) charitable activities.

  3. Sign the DAF Agreement
    Once your goals are aligned, Paramount Impact will provide a DAF agreement outlining:

    • Your role as the donor-advisor, including the ability to recommend grants and investment strategies.

    • Paramount Impact’s responsibilities, such as managing funds, ensuring compliance, and handling administrative tasks.

    • Fee structure (typically a small percentage of the fund’s assets, discussed during the consultation).

    • Access to our secure online portal for managing contributions, recommending grants, paying vendors, and viewing account statements.

    • Legacy planning details, such as appointing successor advisors (e.g., family members) or designating charities to receive remaining funds.Review and sign the agreement to formalize the DAF.

  4. Make an Initial Contribution
    Fund your DAF with an initial contribution, which can include cash, stocks, or other assets like real estate or cryptocurrency (subject to Paramount Impact’s approval). The minimum contribution amount is determined during the consultation (contact us for details). Contributions are irrevocable, tax-deductible, and eligible for immediate tax benefits, such as deductions on income or estate taxes. Your professional advisors can help optimize the timing and type of assets donated to maximize tax savings.

  5. Set Up Financial and Legacy Management
    Paramount Impact places your contribution into a designated DAF account, which can be invested for tax-free growth based on your preferred allocation (options discussed during onboarding). You’ll gain access to our secure online portal, where you can:

    • Recommend grants to IRS-qualified 501(c)(3) organizations.

    • Use debit cards or per diem accounts for approved charitable expenses.

    • Pay vendors directly for project-related costs.

    • View real-time account statements to track contributions, grants, and investment growth. Our team collaborates with your advisors to integrate the DAF into your estate plan, ensuring it supports your legacy goals, such as naming heirs as successor advisors or designating charities for future grants. We provide a brief onboarding session to guide you through the portal and legacy planning features.

  6. Start Grantmaking
    With your DAF established, you can begin recommending grants to your favorite charities, either immediately or over time, using Paramount Impact’s 501(c)(3) status (EIN: 99-3609530). Grants can support local or national nonprofits, including Paramount Impact’s initiatives for education or community empowerment. Our team conducts due diligence to ensure all grants meet IRS requirements, allowing you to focus on your philanthropic vision.

Working with Professional Advisors

Paramount Impact partners with your existing professional advisors—such as financial planners, CPAs, estate attorneys, or family office managers—to ensure your DAF aligns with your broader financial and legacy objectives. We:

  • Coordinate with advisors to optimize tax benefits, such as donating appreciated assets to avoid capital gains tax or timing contributions for maximum deductions.

  • Integrate the DAF into your estate plan, enabling bequests, naming successor advisors (e.g., children or grandchildren), or designating charitable beneficiaries to continue your legacy.

  • Provide advisors with access to our donor portal (with your permission) to recommend grants or monitor account activity, streamlining their role in your philanthropy.This collaborative approach ensures your DAF is a seamless part of your financial strategy, enhancing both your giving and long-term planning.

Why Choose a DAF with Paramount Impact?

Starting a DAF with Paramount Impact offers unique benefits:

  • Tax Advantages: Receive immediate tax deductions for contributions, with potential estate tax benefits for legacy gifts.

  • Flexibility: Recommend grants to any IRS-qualified 501(c)(3) charity at your own pace, with the option to grow funds tax-free through investments.

  • Legacy Planning: Build a multi-generational charitable legacy by naming successors or charitable beneficiaries, integrated with your estate plan.

  • Portal Access: Use our intuitive online portal to manage grants, track funds, and handle expenses effortlessly.

  • Expert Support: Benefit from our team’s expertise, led by Michael Glover, who has managed over $1 billion in nonprofit and family office funds, ensuring your philanthropy aligns with your values.

  • Mission Alignment: Support causes that resonate with Paramount Impact’s commitment to empowering communities, education, and underserved populations.

For example, a donor establishing the “Smith Family Fund” could use their DAF to support youth mentorship programs. With our portal, they can recommend grants, track investments, and work with their estate attorney to name their children as successor advisors, ensuring the fund continues their legacy.

Frequently Asked Questions

  • How long does it take to set up a DAF? Typically, 1–3 weeks, depending on application review and coordination with advisors.

  • What are the fees for a DAF? Fees are a small percentage of the fund’s assets; details are provided during the consultation.

  • Can I involve my family in the DAF? Yes, you can appoint family members as advisors or successors to continue your giving.

  • What assets can I contribute? Cash, stocks, real estate, cryptocurrency, or other assets (subject to approval).

  • How does legacy planning work? You can name successors or charities to manage or receive funds after your lifetime, integrated with your estate plan.

Get Started Today

Ready to create a lasting charitable impact? Visit https://www.paramountimpact.org/daf to fill out the application and start your Donor-Advised Fund with Paramount Impact. Our team will work with you and your professional advisors to ensure your DAF aligns with your philanthropic and legacy goals, supported by our user-friendly portal and mission-driven expertise.