This morning’s Wealth Management section of the Wall Street Journal features a short-but-helpful look at the basics of donor-advised funds under the straightforward title of “Donor-Advised Funds: How Do They Work—And Are They Useful?”
The author, Tom Herman, notes a few different ways a donor might use a donor-advised account. One example is of someone who want to …read more »
The first four misconceptions about donor-advised funds (part one is here and part two is here) related largely to how individuals use donor-advised funds, particularly as compared to other charitable vehicles. Today, we’ll look at two ideas that apply broadly to donor-advised funds and are, sadly, used by some to not just discourage use of this charitable vehicle but …read more »
Last week, we looked at the first two of our six misconceptions about donor-advised funds. Today we’ll explore two more misconceptions, these related to flexibility and control. Next week, we’ll look at two final myths related to the efficacy and value of donor-advised funds.
#3 – Donor-advised funds lack the flexibility of a foundation
It is certainly true that there …read more »
Photo credit: National Review
Presidential candidate Carly Fiorina received flack this week because of reports that her “foundation” gave to Planned Parenthood, an organization to which she has been particularly antagonistic recently on the campaign trail.
In truth, Fiorina and her husband did not have a stand-alone private foundation at all. Rather, they were advisors on a donor-advised account they …read more »
Donor-advised funds (DAFs) continue to be one of the country’s fastest growing giving vehicles. Donors using DAFs find the accounts lead to more strategic charitable giving, while still allowing them to maximize tax deductions. Yet while DAF use may be increasing quickly, many donors still don’t understand how DAF accounts function, and some fall prey to the many misconceptions surrounding …read more »
I always enjoy asking clients why they decided to do their charitable giving through DonorsTrust. These are financially savvy folks and they realize that other groups and institutions offer donor-advised funds. So why go with us instead of someone else?
The answer I keep hearing: Principles.
As one long-time client told me, if all donor-advised funds offer essentially the same …read more »
The Spring issue of Philanthropy magazine highlights a panoply of what it dubs “new flavors in philanthropy.” Those flavors include different giving strategies, tactics, and vehicles for achieving charitable philanthropy that go beyond checkbook giving, foundations, or your traditional charitable organization.
Under the appropriate headline “Giving Made Easy,” Joanne Florino discusses the history and benefits of donor-advised funds. …read more »
Are donor-advised funds beneficial? Though the benefits of donor-advised accounts to individuals are fairly well known – the tax advantages and just the overall ease – is this funding vehicle helping society overall?
Yes, says the Manhattan Institute’s Howard Husock. His new report, Growth Giving: American Philanthropy and the Potential of Donor-Advised Funds, concludes donor-advised funds play a key …read more »