A Perfect Pair: Donor-Advised Funds and Private Foundations

A Perfect Pair: Donor-Advised Funds and Private Foundations

A Perfect Pair: Donor-Advised Funds and Private Foundations

Private foundations and donor-advised funds (DAFs) are among the most popular ways to give, accounting for nearly 30% of all annual charitable contributions. Conventional wisdom says that based on the advantages of each vehicle, they appeal to different donors. For instance, private foundations, owing to their high degree of control and flexibility, are typically associated with larger-scale gifts, while donor-advised funds are thought to be better suited for smaller donors due to their relatively low costs and simple set-up.

In reality, this is not a case of "either/or." Grant-making private foundation trustees can utilize DAFs in several ways to maximize flexibility and philanthropic bandwidth. That’s why private foundation trustees need to understand how DAFs work—and how they can work for foundations.

 

Read the full article here to explore some of the most common situations where a private foundation may turn to a complementary DAF.