UNDERSTANDING DONOR-ADVISED FUNDS DFAs are becoming a popular way of giving, but come with concerns ALBERT VAN SANTVOORT
T
he 21st century has seen boundless change across almost every industry, and philanthropy is no exception.
Over the past five years, an emerging trend has introduced a different structure for philanthropic organizations, one that diverges from traditional charities and private family foundations. Instead of establishing personal foundations like the Bill & Melinda Gates Foundation, or donating to established charities, both donors and corporations are increasingly turning to donor-advised funds (DAFs).
Philantrophy_2021_32_FinalR.indd 22
DAFs supply the infrastructure needed to run a philanthropic organization. They provide donors with administrative convenience, cost savings and immediate tax advantages. Meanwhile, donors maintain advisory privileges as to what charitable causes will receive their funding. Donations can be invested through a DAF to generate investment income on a tax-free basis, and these funds can subsequently be given to various
2021-10-27 9:23 AM
