Wednesday, December 21, 2011

Donor Advised Funds

Donor advised funds allow a person to establish his or her own fund at either a public or community foundation. Each fund would have its own specific purpose or focus. Donor advised funds can be established through Community Foundations (Madison Community Foundation is an example), Financial Institutions (Vanguard Charitable is an example), and Public Charities (such as hospitals).

If you are considering using a donor advised fund, several things you should consider include:
  1. what are the minimum funding requirements?
  2. what assets will they accept (cash, cars, homes, stocks)?
  3. how many generations of successor are allowed?
  4. what is the frequency of grants being made (annually, quarterly)?
  5. what services are offered (research, meetings, etc.)?
  6. what fee does the foundation charge?
Remember, a blog is not a substitute for legal advice. It is best you speak with an attorney in your state regarding your situation.

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