Donor-advised funds draw record pre-IPO share inquiries at DAFgiving360

Donor-advised funds for tech shares are drawing record inquiries about private-business interests and pre-IPO stock at DAFgiving360, according to its president, Julie Sunwoo. For employees and founders with appreciated shares, the structure can combine a charitable contribution with potential tax benefits, but private-stock transfers can be complicated and the money may reach recipient charities later.

CNBC reported that DAFgiving360, a donor-advised fund provider affiliated with Charles Schwab, has seen particularly strong interest in private-company stock as high valuations for companies such as Anthropic and OpenAI, and longer private-company lifespans, have increased attention on such gifts. The connection between those market conditions and donor interest was reported by CNBC, rather than established as an industrywide measure of tech-share giving.

The clearest available data is specific to DAFgiving360. The organization said 73% of dollars contributed in its fiscal 2026, which ended June 30, came in non-cash assets, including individual stocks, pre- and post-IPO shares, ETFs, mutual funds and private-business interests. That figure does not show how much came from technology shares or whether donations rose from an earlier period.

How do donor-advised funds work with tech shares?

A donor-advised fund, or DAF, is an account held at a sponsoring public charity. The donor makes an irrevocable contribution to that charity, may be eligible for a charitable deduction in the contribution year, and can recommend grants to qualified charities over time, according to the National Philanthropic Trust and DAFgiving360.

The sequence matters. First, the donor contributes an asset to the DAF. The sponsor then must accept, value and process the asset, which can be especially difficult for private stock. The sponsor may ultimately liquidate it. Only afterward can the funds be granted to recipient charities.

For qualifying long-term appreciated stock, direct donation can avoid the capital-gains tax that could apply if an investor sold the shares first, according to National Philanthropic Trust and DAFgiving360. The providers say a donor also may qualify for a fair-market-value deduction, subject to tax rules and limits.

• National Philanthropic Trust says cash gifts are generally deductible up to 60% of adjusted gross income.
• It says qualifying long-term appreciated assets may generally be deductible up to 30% of adjusted gross income.
• Unused deductions may potentially be carried forward for five years, subject to applicable limits.

Those outcomes depend on the asset, holding period and a taxpayer's circumstances. DAFgiving360 says gifts of appreciated non-cash assets can require complex tax analysis, and its materials advise donors to consult tax or legal advisers.

What can block a pre-IPO share donation?

Not every private share can be given away. CNBC reported that some private companies restrict or prohibit donations of their stock to charities or trusts. DAFgiving360 says a sponsor must conduct due diligence and review company documents for transfer restrictions before accepting pre-IPO shares.

IPOs can create potential wealth events for founders, executives and employees with company equity, according to DAFgiving360. The Wall Street Journal reported that prospective offerings involving SpaceX, Anthropic and OpenAI could produce additional philanthropic interest, though the scale and timing of any resulting giving remain uncertain.

DAFs also face criticism over timing. A 2018 New York Times report said critics argue donors can receive immediate tax benefits while charities wait indefinitely for funds. DAFgiving360 reported the other side of the record: more than $10 billion in grants to charities, across more than 1.6 million grants, in fiscal 2026. Those figures are the provider's own reported results, not sectorwide data.

This story draws on original reporting from CNBC.