I don’t believe this is necessary. Once money is given to a DAF, it’s a charitable donation in that particular tax year and is no longer owned or considered net worth of the individual. They only “play” it should receive in PL is simply as a charitable contribution in that tax year. This capability already exists in PL. It would be problematic to have a separate account for DAF b/c those assets no longer belong to the person.

I have no comment on Donor Advised Funds being an account type but they should get their own Expense type. Donations into the DAFy from an investment account can be cash but are often appreciated securities. Donations are both tax deductible and non-taxable in terms of capital gain taxes. Charity Expense doesn’t have the non-taxable option.

Perhaps just allowing Donation expenses which funded from a Taxable Investment account to be marked as tax-efficient/exempt from LTCG would suffice.