A More Efficient and Effective Version of Private Foundations

What is a Donor Advised Fund?

The name implies the single most important characteristic of the Donor Advised Fund (DAF), and the most significant difference from the Private Foundation.  The DAF is a program that invites donors to make contributions to the charity, which allows the donor to be eligible for an immediate tax deduction.  Donor are then able to make recommendations for how the funds should be distributed.

How it works

The donor makes a tax-deductible gift to establish an immediate donor advised fund.  Eventually, the donor would advise how the charitable organization how to use the gift.  The DAF can also be used to continue your family’s philanthropy into the next generation.  A DAF may be established through a bequest, so that your children or other family members can become fund advisors.

Why It May Appeal to You:

You want to make and charitable gift and you

  • Want significant income tax deductions
  • Want the funds to be distributed consistent to the donor’s philanthropic objectives
  • Want administrative costs related to the fund to be drastically reduced or eliminated