Charitable Transfers - Donor Advised Funds

Donor Advised Funds
Donor advised funds are a simple way of setting up an individual, corporate or family legacy for charitable giving instead of gifting to charities directly. They consist of charitable giving accounts that are offered by a sponsor organization and often offer a less expensive alternative to setting up your own private foundation. You simply make your irrevocable, tax-deductible contribution into the account and then anytime thereafter make charitable grant distributions.

The account can be setup in the family name such as "The Thompson Family Foundation" and cash or appreciated securities can be deposited directly into the account, and invested until the account is instructed by the donor to make a charitable grant. The sponsor organization will perform the due diligence, record keeping and keep your donation anonymous if you desire. Estate and Gift Taxation


Related Articles
  1. Saving and Spending

    Top Tips for Maximizing Charitable Deductions

    Charitable donations can be a great financial planning tool. Here are some ways to make the most of them.
  2. Professionals

    Estate and Gift Taxation

    Estate and Gift Taxation
  3. Professionals

    Sample Questions 1 - 5

    Sample Questions 1 - 5
  4. Philanthropy

    Guiding Clients on Charitable Remainder Trusts

    Clients who wish to make donations to charity can reap an enormous tax deduction with charitable remainder trusts, but it must be set up correctly.
  5. Financial Advisors

    Charitable Giving: How to Help Clients Do More

    The use of donor-advised funds is on the rise, but advisors could be doing more to engage their philanthropic clients. Here are some talking points.
  6. Professionals

    Inter-Vivos and Testamentary Charitable Gifts

    Inter-Vivos and Testamentary Charitable Gifts
  7. Home & Auto

    Using Life Insurance To Make Charitable Donations

    Your life insurance policy can be a great tool for charitable giving. Find out how.
  8. Professionals

    Charitable Gift Annuities

    Charitable Gift Annuities
  9. Professionals

    Charitable Lead Trusts

    Charitable Lead Trusts
  10. Professionals

    Answer Key

    Answer Key
RELATED TERMS
  1. Donor Advised Fund

    A private fund administered by a third party and created for ...
  2. Bargain Sale To A Charitable Organization

    The sale of a good or service to a charitable organization for ...
  3. Charitable Donation

    A gift made by an individual or an organization to a nonprofit ...
  4. Charitable Gift Life Insurance

    A method of contributing to charity by taking out life insurance ...
  5. Private Foundation

    A charitable organization that, while serving a good cause, does ...
  6. Charitable Remainder Annuity Trust

    A type of gift transaction in which a donor contributes assets ...
RELATED FAQS
  1. Can I donate stock to charity?

    Giving stock, instead of cash, as a donation can greatly benefit both parties. You will find that most charities, hospitals, ... Read Answer >>
  2. Under the Uniform Securities Act, which of the following advisers is NOT defined ...

    The correct answer is b). Federal covered advisers include those who manage client assets of $25,000,000 or more or who advises ... Read Answer >>
  3. What's the largest charitable donation Warren Buffett ever made?

    Learn about Warren Buffett's biggest financial contributions and how his estate is to be divided between charity and Buffett's ... Read Answer >>
  4. Under what circumstances would I require private wealth management?

    Learn why many high-net-worth individuals may prefer private wealth management services, and understand how these firms charge ... Read Answer >>
  5. What determines the interest rate in my money market account?

    Placing funds in a money market account may provide a higher interest rate than a savings account due to the underlying securities ... Read Answer >>
  6. Under the Uniform Securities Act, the registration of an investment adviser results ...

    The correct answer is b. Clerical employees do not need to be registered as investment adviser representatives, while solicitors, ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center