Donor Advised Fund

DEFINITION of 'Donor Advised Fund'

A private fund administered by a third party and created for the purpose of managing charitable donations on behalf of an organization, family, or individual.

BREAKING DOWN 'Donor Advised Fund'

Donor advised funds have become increasingly popular. They offer the donor ease of administration, while still allowing him or her to maintain significant control over the placement and distribution of charitable gifts. Companies are able to offer this service to clients with fewer transaction costs than if the funds were handled privately.

RELATED TERMS
  1. Bargain Sale To A Charitable Organization

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

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

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

    A charitable organization that, while serving a good cause, does ...
  5. Quid Pro Quo Contribution

    A charitable donation for which the donor receives something ...
  6. Life Income Plan

    A type of philanthropic strategy where cash or property is transferred ...
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. Taxes

    Cut Your Tax Bill With Donor-Advised Funds

    Beat the tax man come April 15 by investing in a charity-friendly fund.
  3. Personal Finance

    The Top Nonprofit Donors In 2011

    Charitable giving increased in 2011, especially among wealthy donors. This article looks at three of the top donors and where they invested their money.
  4. Personal Finance

    7 Signs Of A Charitable Disaster Scam

    Make sure you know where your donations are going, and where they can be most effective.
  5. Personal Finance

    Is The Billionaire Charity Pledge A Good Idea?

    Will Bill Gates' call for billionaires to become more active in charitable giving do all the good it could?
  6. Savings

    529 Plans: How Much Do You Really Need to Save?

    529 Plans are a popular way to save for college. Here's how to be strategic about how to fund them, depending on your children and their expectations.
  7. Taxes

    Tips on Charitable Contributions: Limits and Taxes

    An overview of the limits and tax deductions of charitable donations.
  8. Your Clients

    Why Millennials Should Talk Philanthropy Soon

    Charitable giving can provide advisors planning opportunities with millennials. Here's why.
  9. Investing News

    How To Plan For The Charitable Giving Boom

    Of the $58 trillion that will be passed over the next several decades, $26 trillion could go to charity. Here's how to plan for that huge shift.
  10. Retirement

    Choosing The Best Charitable Gift Annuity

    Want to support a cause you care about, but still earn income from that donation in your retirement years? This vehicle offers both.
RELATED FAQS
  1. What are the easiest and most affordable types of charitable trusts to create and ...

    I want to create some kind of charitable trust to name as beneficiary on my stocks, funds, real estate and will. I have no ... Read Answer >>
  2. What are the tax deductions for donating office space to a non-profit?

    I have a small (1,500 sq ft) stand-alone office building and parking lot that I donate a 100% of to the American Red Cross. ... Read Answer >>
  3. 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 >>
  4. How does private placement affect share price?

    Understand what it means when a company does a private placement, and learn how this typically impacts the share price of ... Read Answer >>
  5. What is private wealth management?

    Understand what private wealth management is from the perspective of both the private client as well as the private wealth ... Read Answer >>
  6. What is the difference between a hedge fund and a private equity fund?

    Learn the primary differences between hedge funds and private equity funds, both of which are utilized by high net worth ... Read Answer >>
Hot Definitions
  1. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  2. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  3. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  4. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  5. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  6. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
Trading Center