Serving as a tax and estate attorney, Gary has observed several clients reach their philanthropic objectives through charitable gift planning. Many were interested in funding a charitable endowment and considered establishing a private foundation or a charitable trust. As part of their planning, it was appropriate for them to consider a donor-advised fund at the Community Foundation.
Gary believes that a private foundation or charitable trust may not be the appropriate choice for most donors because of the regulatory requirements and administrative burdens.
“A donor-advised fund at the Community Foundation eliminates those issues and simplifies a family’s tax plan,” he said. “A substantial contribution can be made to the fund, oftentimes at year-end, requiring only one receipt for the IRS. The fund can then be used to support a family’s favorite charities over any period of time, when it is convenient for them.”
In addition to the simplicity and tax benefits, Gary tells his clients that a donor-advised fund can foster a family’s charitable values. For example, its structure encourages family member participation in suggesting charitable donations.