Donor advised funds have become a key tool for many philanthropists, whether established through a community foundation, national organization, or other institution. In fact, despite the recession, DAFs were the fastest growing giving vehicle in 2009, and are projected to continue to grow in 2011 and beyond.  While the value of DAF assets fell in 2008 and 2009, there are now more than twice as many donor advised funds as private foundations.

What’s driving this growth? Besides being relatively simple to establish and providing specific tax benefits, DAFs allow donors to make gifts anonymously, whereas private foundations are required to disclose their grant making activities. In addition, donor advised funds can be a key tool in estate planning as the designated beneficiaries of retirement plans and insurance policies.

Check out this report from National Philanthropic Trust for more details or read about how it’s done at The Seattle Foundation.

Is this a good option for you?

Filed under: Trends by Kristin Barsness on January 5, 2011