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Donor Advised Fund
Exploring the Donor Advised Fund
For many families, the Donor Advised Fund (DAF) represents a more attractive option than the Private Foundation when it comes
to realizing charitable objectives. In fact, the DAF is a planning option that is increasing in popularity.
Name Recognition...
Much like the Foundation, the DAF makes it possible to take action today that will bear witness to philanthropic wishes for years
to come. And, since the donor is invited to provide advice (hence the name), it is a lasting witness to the priorities and values
of those whose name adorns the Fund.
Flexibility to Realize Objectives...
One of the major attractions of the DAF is that, like the Private Foundation, it is flexible enough to remain true to the charitable
wishes of the donor. By design, the DAF lends an attentive ear to the donor's charitable wishes. And, though the final distribution
and administration rests in the hands of the charity, the donor is able to see objectives and goals realized.
Economic and Administrative Efficiency
One of the major concerns of any philanthropist is that as much of every dollar go to charitable purposes as possible. Since the DAF
is one part of a much larger whole - that is, a part of a larger sum administered by the charity - costs are shared and minimized. In the
process, the DAF benefits from the experience of experts in the management of these funds.
By contrast, for Foundations with less than ten million dollars in assets, the costs related to managing and administering can dramatically
reduce grants for charitable purposes.
Income Tax Deductions...
The Donor Advised Fund offers some very attractive income tax deductions, especially when compared to those of the Private Foundation.
Because the legal right to distribute the DAF resides with a private charitable organization, it qualifies for the standard charitable income
tax deductions. This means that cash gifts are deductible up to 50% of adjusted gross income, and appreciated property is deductible up to 30%.
(Deductions for the Private Foundation are limited to 30% and 20%, respectively.)
The Legacy of a Foundation
The names echo with familiarity. They are the families who have established America's greatest Private Foundations. Through the vehicle of the Private
Foundation, they have seen their philanthropic vision take shape, and to a great extent, have defined philanthropy.
In many ways, the Private Foundation has seemed an ideal tool. It allows for involvement in a wide range of charitable ventures, while
making it possible for the donor to retain complete control of giving decisions.
And, while the Private Foundation may have benefits for those with very large assets, it is far from ideal for everyone.
A new strategy brings the lasting legacy of the Private Foundation to a wider range of families. It is known as the Donor Advised Fund.
While it is rooted in the same broad charitable support and lasting impact as the Foundation, for many, the DAF offers even greater benefits and increased flexibility.
When all of these benefits are considered, it is easy to see why so many families are taking a serious look at the Donor Advised Fund. If you would
like more specific information on how a DAF can help you and your family meet your philanthropic objectives, please contact us. We have professionals
specifically trained to answer your questions and help you review the options that best meet your needs. All information is provided without cost or
obligation, and any communication is treated in strict confidence.
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