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Donor Advised Funds

THE CASE FOR DONOR ADVISED FUNDS

What are donor-advised funds?

A donor-advised fund allows donors to make an irrevocable contribution to a fund, claim the charitable contribution on their income tax returns, then recommend distributions to charities from the fund.

A donor-advised fund allows the donor a “one stop shop” for their charitable giving by making one gift (to their donor-advised fund) and then recommending distributions whenever they choose.

Donor-advised funds are the fastest growing charitable giving vehicle and now outnumber Private Foundations by more than two to one.  (National Philanthropic Trust survey)

What are the advantages of donor-advised funds?

    • The donor avoids the time and expense of creating a private foundation.  Your donor-advised fund is not bound by IRS minimum distribution rules that apply to private family foundations.
    • The donor has the option to remain anonymous.
    • The donor recommends grants, but does not have to handle their contributions to individual charities.
    • The donor has the flexibility in the timing of grant distributions from their fund.
    • The Hastings Community Foundation handles all accounting, record-keeping, and investment management of the donor-advised fund.