More Than a Giving Account
By Meg Lokey, Vice President of Philanthropy, Pinellas Community Foundation
Many people think of a donor-advised fund (DAF) as simply a place to hold charitable dollars until they’re ready to recommend grants. In reality, a DAF is much more than that. It is a charitable investment vehicle designed to help donors maximize both the timing and long-term impact of their philanthropy.
Understanding how a DAF works after a contribution is made can help advisors guide clients toward more thoughtful and strategic charitable planning.
Charitable Assets Can Continue Working
A donor-advised fund is more than a place to hold charitable dollars until grants are recommended. Once assets are contributed, they may be invested according to the options offered by the sponsoring organization. Any investment growth remains charitable and can increase the amount available to support nonprofits over time.
At Pinellas Community Foundation, charitable assets are managed as part of a broadly diversified investment pool. In 2023, PCF’s investment portfolio included U.S. and international equities, fixed income, strategic investments, cash equivalents, and real estate. Investment decisions are reviewed by an investment committee and an independent third-party firm.
That stewardship matters because donors are not always ready to make every grant immediately. Assets can remain invested while donors develop a thoughtful giving plan, respond to changing community needs, or provide consistent support over a period of years.
PCF’s long history illustrates the potential of allowing charitable capital to continue working. In 1978, a donor established an endowment with a $600,000 gift. With annual distributions now at $77k for the operating and programs of the arts organization equaling nearly $2.7 million to date. That initial gift is worth nearly $2.7 million today. (updated numbers to reflect the most recent increase).
Although an endowment operates differently from a donor-advised fund, the example demonstrates an important principle: thoughtful investment and stewardship can allow a charitable gift to produce impact far beyond its original value.
Giving on Your Timeline
One of the greatest advantages of a donor-advised fund is the ability to separate the timing of the charitable contribution from the timing of grants to nonprofit organizations.
A client may make a larger contribution during a high-income year, then recommend grants over months or even years. This allows nonprofits to continue receiving consistent support while giving the donor flexibility to respond to changing priorities or emerging community needs.
Understanding Investment Options, Oversight and Fees
Investment choices, administrative fees, minimum balances, and available services vary among donor-advised fund sponsors. Donors and their advisors should understand not only what investment options are available, but also who oversees those investments, how performance is reviewed, and what services are included in the cost.
Fees should be considered in context. A sponsoring organization may provide investment administration, tax reporting, grant processing, nonprofit due diligence, family-engagement support, and charitable guidance. At a community foundation, donors may also gain local knowledge and guidance in identifying effective organizations and emerging needs.
The right question is therefore not simply, “What does the fund cost?” but “What stewardship, service, and charitable value does the sponsor provide over the life of the fund?” Pinellas Community Foundation holds itself accountable for fulfilling the intentions behind each philanthropic investment. For PCF, meeting that obligation requires a continuing commitment to sound financial management and expense containment.
A Planning Tool, Not Just a Tax Tool
While donor-advised funds are often discussed in the context of tax planning, their value extends well beyond a single tax year.
They provide flexibility for long-term philanthropy, simplify charitable administration, and allow donors to make grant recommendations when opportunities arise rather than when tax deadlines demand action.
For advisors, that makes a donor-advised fund an effective way to integrate charitable giving into a client’s broader financial, estate, and legacy planning.
The Value of a Local Partner
At Pinellas Community Foundation, donor-advised fund holders receive more than an account. They gain access to local knowledge, charitable expertise, and guidance on opportunities throughout Pinellas County.
Whether a client wants to support education, environmental initiatives, human services, the arts, or respond to an emerging community need, PCF helps connect charitable resources with meaningful local impact.
When donors understand that a donor-advised fund is designed not only to receive charitable assets but also to steward them thoughtfully over time, it becomes clear why DAFs remain one of the most effective tools in charitable planning.
If you are considering a donor-advised fund or would like to better understand how charitable assets can be managed over time, I would be glad to talk with you. Please feel free to contact me to discuss your charitable goals and the options available through Pinellas Community Foundation.
About Meg Lokey
Born and raised in Pinellas County, Meg Lokey brings more than two decades of fundraising and donor engagement experience to her role as Vice President of Philanthropy at PCF.
Meg Lokey works with donors, families, and professional advisors to help align charitable giving with personal values, planning goals, and community impact through Pinellas Community Foundation.
