A donor-advised fund, or DAF, is one of the easiest ways to organize your charitable giving during your lifetime. But what happens to your DAF after you are no longer here to recommend grants? Many donors are surprised to learn that without a plan in place, the answer is decided for you—not by you. The good news is that creating a succession plan for your DAF is simple, and it ensures your philanthropic generosity continues exactly as you intend.

What Is a DAF Succession Plan?

A succession plan tells your DAF sponsor what should happen to the assets remaining in your fund after your lifetime. Every DAF sponsor asks new account holders to make this decision when the fund is established, and most allow you to update it at any time as your wishes or family circumstances change.

Three Ways to Shape What Happens Next

Check with your DAF sponsor to learn about your options. Depending upon their policies, you may be able to:

• Name charities directly. You can direct that the balance remaining in your fund be distributed immediately to Columbia and/or other organizations you have supported during your lifetime.
• Name a successor advisor. A spouse, child, or other loved one can take over management of your DAF, recommending grants to causes close to their own hearts. 
• Do both. You can split the difference—directing a portion of your fund to the charities you choose, while leaving the remainder for a successor advisor to manage and distribute over time.

At the same time, more donors are turning to gift planning, combining current gifts with future commitments to create a balanced approach that supports both immediate needs and long-term priorities.

How to Get Started

Contact your DAF sponsor and ask for a beneficiary designation or succession plan form. Most sponsors make this available online, and completing it takes only a few minutes. A DAF is already a wonderful tool for simplifying your giving today. With a succession plan in place, you can be confident it will continue to make a difference well into the future.