What is a Donor-Advised Fund?
If you, your family or your organization is looking for an easy, inexpensive way to organize your philanthropy, a donor-advised fund might be worth considering.
Donor-advised funds are an attractive alternative to private foundations, offering more flexibility, confidentiality and maximum tax benefits. Donor-advised funds are quick and easy to establish, and they are administered by public charities, so you’ll receive an immediate tax deduction when you add cash, stock or other assets. The money in the fund is invested, allowing your charitable dollars to grow while you take your time deciding when and where to do your charitable giving.
Once you’ve established your donor-advised fund, you can grant your charitable dollars to 501(c)(3) public charities at your convenience. There’s no distribution requirement, so you can grant as little or as much as you want, and you can also designate successors to advise the fund after your lifetime.
As an added bonus, if you add to the donor-advised fund annually, and if you do all of your charitable giving through the fund, there’s only one receipt to worry about when tax season rolls around.
Authored by: Leanne Breiby, Communications Manager