What is the difference between a donor-advised fund and a charitable remainder trust?

A donor-advised fund (DAF) is a charitable giving account that allows you to contribute assets, receive an immediate tax deduction, and recommend grants to qualified nonprofits over time. A charitable remainder trust (CRT) is an irrevocable trust funded with appreciated assets; it provides you or designated beneficiaries with income payments for a period of time, after which the remaining trust assets pass to charity. DAFs offer simplicity and flexibility; CRTs offer income generation and can be more effective for large, highly appreciated positions. Both can be integrated with your estate and tax strategy.