Charitable giving often starts with good intentions, where a cause resonates, a story moves you, or a need presents itself and you want to help. But I’ve seen that the most lasting impact is typically made when generosity is paired with intention and structure.
As a Partner at Kensington, I regularly help clients think through how charitable giving fits into their broader financial picture. And as a donor and volunteer board chair of the Delaware County Foundation, I’ve experienced firsthand how thoughtful giving can enrich your life in ways that go far beyond the dollars donated.
I believe one of the greatest tools for aligning generosity with purpose is through a donor-advised fund.
The benefits of donor-advised funds
A donor-advised fund, often called a DAF, is a charitable giving vehicle that allows individuals or families to make a contribution, receive an immediate tax benefit, and then recommend grants to qualified nonprofits over time. While the mechanics are important, what truly sets donor-advised funds apart is the flexibility they provide.
Rather than making one-off donations, a DAF allows you to plan strategically. You can support causes that matter most to you, involve your family in giving decisions, and respond thoughtfully when needs arise. A donor-advised fund helps guide giving that is less reactive and more intentional.
Understanding charitable contribution “stacking”
To maximize the tax benefits of a donor-advised fund, some donors choose to “stack,” or combine, several years of charitable giving into one larger contribution. Doing so may allow you to itemize deductions in that year (potentially creating a greater tax benefit than taking the standard deduction) while still supporting your charities over time through grants from the fund. In the years you do not stack contributions, you can return to taking the standard deduction. Over time, this strategy may help increase your total tax benefit compared with claiming the standard deduction each year.
Four key questions to consider
If you’re considering a DAF, it can be helpful to pause and think through a few key questions before getting started:
- What causes or communities matter most to you?
- Do you want to involve family in your charitable decisions?
- Are there assets that could be donated in a tax-efficient way?
- What kind of legacy do you want your giving to create?
Seeing giving from both sides
My perspective on donor-advised funds isn’t just professional, it’s personal.
I started my own donor-advised fund and I’ve had the privilege of helping steer a community-based donor-advised fund through Women Giving Together, a women’s giving circle that supports nonprofits serving Delaware County, Ohio. Our giving circle was recently featured in the Columbus Dispatch for the incredible impact it has made in our community.
Through my involvement, I’ve witnessed how impact multiplies when people come together around shared values and a common mission. Collective giving has the power to allow donors to pool resources, learn from one another, and create impact that is often greater than any one person could achieve alone. It also builds strong connections between donors, nonprofits, and the communities they serve.
Experiencing this process firsthand has shaped how I think about charitable planning. It’s reinforced that giving isn’t just about tax efficiency or financial strategy. It’s about engagement, education, and the sense of purpose that comes from being part of something bigger.
Experience matters
Having sat on both sides of the giving table, I’ve also learned that charitable planning is deeply personal. The conversations clients want to have are rarely just about numbers. They’re about legacy, family, community, and values. It’s important to have a financial partner who is able to listen and suggest the right strategies to best fulfill your wishes.
This perspective is especially important for individuals and families navigating transitions, whether that’s retirement, the loss of a loved one, or a shift in how they want to make an impact in the world.
Make giving part of your ongoing plan
Charitable giving should not be reserved for year-end planning or major life events. When approached thoughtfully, it can be an ongoing part of your life, and one that evolves as your goals and circumstances change.
A donor-advised fund can be a powerful starting point for those who want to give with intention, flexibility, and purpose. It creates space to be thoughtful, to involve loved ones, and to align generosity with long-term goals.
At Kensington, we believe that when giving is intentional, everyone benefits. If you’d like to start a conversation about how you can create more intentional giving this year, our team is here to help.
Paula Tarpey is a strong leader in the financial community. She is a partner and director of wealth management at Kensington Wealth Partners. Paula is a published author and is often requested to speak to national and local audiences on financial planning topics. Most importantly, Paula is passionate about serving her clients and community and is proactive in helping her clients take action to achieve their goals.
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