Private Wealth Matters

donor advised fund


Moving down the Philanthropic Continuum, we come to one of my favorite tools in the charitable toolbox, the Donor Advised Fund (DAF).  Often referred to as the “poor person’s foundation” (but in a good way), the DAF enables the donor to accelerate charitable contributions into the current year without necessarily making grants to any public charities in that year.  DAF’s work very well in a whole range of circumstances but to me, they are tailor-made for the following situations:


  • Case 1:  The potential donor is faced with a significant liquidity event (sale of a business, exercise of stock options, large bonus, etc.) and is looking for a way to shelter some of that income.  S/he has always been charitably inclined but has never engaged in more than some current annual giving and does not know exactly where s/he wants to ultimately donate the funds.  Using a…

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