When you make a donation to to your DonateWell donor-advised fund the donation goes to DonateWell's general fund and for tax purposes is considered an irrevocable donation to DonateWell. You then have advisory privileges on the distribution and investment of funds in you account. This means that you are asking DonateWell to make a grant to the nonprofit of your choice and, when not prohibited from doing so for legal reasons, DonateWell will generally follow your advice.
Here are some things to keep in mind:
- Contributions are not refundable
- You or any related third party will receive no more than an incidental benefit from the donation
- You do not directly or indirectly control the grant recipient
- You have imposed no conditions or restrictions preventing DonateWell from using the contribution to further its charitable mission and comply with legal and regulatory requirements
- You have advisory privileges on the distribution of money but you grant DonateWell exclusive legal control and ownership of your contribution