What is a donor-advised fund?
The term “donor-advised fund” is not defined in any statutes; however, the donor-advised fund (DAF) is an increasingly popular vehicle of charitable giving that has had a particularly substantial impact on philanthropy over the past several years. The Chronicle of Philanthropy reported that the 88 organizations that provided figures for both 2003 and 2004 to The Chronicle collectively held over 80,000 DAFs. These organizations collectively held $13 billion in assets and distributed $2.6 billion to charities. A donor-advised fund is generally understood to be a fund maintained by a public charity (the “sponsoring organization”), subject to an agreement under which the donor has the right to make recommendations about distributions and/or investments. The donor-advised fund is owned, controlled and administered by the public charity, which has a fiduciary obligation to ensure that the donor-advised assets are used exclusively for charitable purposes. Donor Benefits: • An immediate income
A donor-advised fund is a charitable giving vehicle that is typically established by an individual or family who wishes to create a fund in their name and participate in the grant making process. It allows donors to combine the most favorable tax benefits with the flexibility to support their favorite charities at any time. The donor-advised fund is administered by the Orange County Community Foundation, subject to an agreement under which the donor (or an advisor designated by the donor) makes recommendations with respect to distributions. As with its other assets, the community foundation has the fiduciary obligation to ensure that donor-advised assets are used exclusively for charitable purposes.
Related Questions
- How is the Brooklyn Community Foundation ensuring that donor-advised fund giving helps Brooklyn communities, while also allowing donors flexibility in their giving?
- How would I give through a donor-advised fund, matching grant, or planned giving program?
- How do I set up a donor-advised fund at Brooklyn Community Foundation?
