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 ?
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.
The Pension Protection Act of 2006 (PPA 2006) has extended several of the regulatory requirements applicable to private foundations to donor advised funds.
Donor advised funds provide a vehicle for philanthropy that allows the moderate philanthropist some of the same opportunities available to the wealthy philanthropist.
There are numerous advantages to using donor advised funds.
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.
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.