Donor Advised Funds
A Donor Advised Fund is a philanthropic tax planning tool. It allows a donor to make a one-time charitable donation, receive full and immediate tax benefits for the calendar year, and grant from that fund to limitless nonprofit organizations without timing or minimum pay out restrictions. In the case of appreciated assets, a Donor Advised Fund can assist you in turning capital gains into charitable gains!
|Donor Advised Fund||Private Foundation|
|Cost||Requires a one time set-up fee and an annual fee of 1%.||Often requires employing lawyers, accountants and staff, as well as administrative expenses.|
|Administrative Requirements||The Foundation will establish an individual fund in your name. We manage investing, accounting and state and federal reporting.||An individual 501(c)3 organization must be established and will require filing with the IRS for charitable tax exemption status. Responsible for compliance with federal and state guidelines.|
|Tax Benefits||Charitable deduction of 100% fair market value for most gifts of long term capital gain||Charitable deduction often limited to donor cost. Subject to additional federal taxes that DAFs are not.|
|Flexibility||No annual payout requirement. Grant funds at your own pace, however you choose.||Subject to a 5% annual grant payout.|
|Privacy||Choose whether to gift publicly or anonymously.||No anonymity option.|