Donor Advised Funds v. Family Foundation

25/10/2010 at 10:04 Leave a comment

Do you know the difference? Do your donors? Some simple info you can use:

Family Foundation

  • Registered with the IRS as a nonprofit corporation or trust
  • Governed by Board of Directors (can include a donor and/or family members)
  • Assets are held at a bank, trust company or investment firm and invested at the direction of the Board and subject to IRS restrictions
  • Must grant a minimum of five percent of its assets annually
  • Board has discretion where money is donated
  • Good for branding philanthropy, creating multi-generational involvement or philanthropic assets in excess of $10 million

Donor Advised Fund (DAF)

  • Created when a donor makes a contribution to a public host charity (community fund) that deposits money in a separate investment account
  • Donors may also establish DAF through their financial investment firm, i.e. Fidelity etc.
  • While money is held by others, donor makes recommendations where gifts are to be made
  • Donor receives tax deduction when DAF is established and whenever an additional contribution is made to the fund
  • Currently there is no annual IRS payout requirement

Donors should always check with their financial and legal advisors when deciding what instrument to use. Nonprofit professionals should work their legal counsel and financial advisors.

Entry filed under: Resources You Can Use!. Tags: , , , , .

Robbie Q. Telfer – Storytelling for Nonprofits Net Worth = Size of a Major Gift?

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Trackback this post  |  Subscribe to the comments via RSS Feed

Enter your email address to follow this blog and receive notifications of new posts by email.


Barbara’s Twitter Feed

Beyond Melbourne

Food Travel Markets Artists

Annual Fund Lab

The Annual Fund Isn't Annual At All

Gippsland Unwrapped

Zero waste, plastic free and no palm oil. My life 'unwrapped' in Gippsland.

Just another site


Leaders Not Managers

Susan Sink

life on these 80 acres

The Net Naturalist

A field guide to social media.

Good By Choice

philanthropy. kindness. insights. observations

Pretty Prints & Paper

Using the bullet journal and calligraphy to cultivate an intentional life

Passion Themed Life

multi-passionate mom learning as i go


Life with Labs in Las Vegas

No Small Change

All things pertaining to communications, from the bunch of us at Barapani

Activate Learning Solutions

Learning Solutions that Activate Performance in Your Company

Clay Myers-Bowman

Producer, Photographer & Fundraising Consultant

Startups and Burritos

Mostly about startups but sometimes about burritos too.

Nonprofit Nate

Helping people help causes.

Talisman Thinking Out Loud

Philanthropy - Fundraising - Nonprofit Management

%d bloggers like this: