Donor Advised Fund

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Donor Advised Fund

A way to structure a charity in which a third party manages the funds donated and gives them to the organization at the request of the donor. That is, a philanthropist (or a family or a foundation) may set up a donor advised fund and direct money to any of a number of organizations. A donor advised fund is a relatively inexpensive way to set up charitable donations while allowing the maximum amount of flexibility for the donor.
References in periodicals archive ?
NEW YORK, April 22, 2015 /PRNewswire/ -- Jewish Communal Fund(JCF), an independent public charity that facilitates charitable giving for more than 6,000 fund holders through donor advised funds, enables its fund holders to invest their charitable assets in mission-aligned investment vehicles.
In these cases, FJC's donors may use assets in their donor advised funds to secure loans to nonprofit organizations about which they care and whose credit cannot stand by itself.
Donor advised funds provide a vehicle for philanthropy that allows the moderate philanthropist some of the same opportunities available to the wealthy philanthropist.
Donors, advisors, attorneys and others considering whether to avail themselves of donor advised funds, establish a private foundation or use a combination of charitable vehicles to meet their philanthropic goals, are invited to participate.
Renaissance Charitable Foundation has already grown to over $330 million in assets - currently providing Donor Advised Funds to donors in all 50 states and Canada.
Starting in 1996, Merrill encouraged its financial advisers to introduce their clients to their local community foundations, which agreed in return to offer Merrill Lynch to donors as an option for managing assets in donor advised funds they created as a result of referrals by Merrill Lynch advisers.
Recognized as the fastest growing charitable instrument in the country today, donor advised funds (DAFs) have historically been limited in their ability to support the levels of family collaboration, donor-grantee communication and investment flexibility being demanded by today's more engaged donors.
NPT's report also expanded on the key finding of the long-awaited and recently released United States Department of Treasury's "Report to Congress on Supporting Organizations and Donor Advised Funds," including that payout rates for DAFs are substantially higher than that of private foundations.
But for nonprofits orchestrating donor advised funds, a significant portion of the expense pie includes the amount of grant dollars that were issued, during the year.
One option for some nonprofits may be offering their own donor advised funds.
CAFAmerica's range of charitable solutions include: Donor Advised Gifts, Donor Advised Funds, Matching Donor Advised Funds, Designated Funds, bequest planning and 'Friends of' Charity Funds.