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Article Archives >> Ready Reference >> February 16-28, 2007

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Donor Advised Funds Still
Compare Well with Private Foundations

Pension Protection Act imposed new limitations
but absolute control of foundations has costs and other limits


Donor advised funds (“DAFs”) are often considered the small donor’s private foundation. They may be more quickly established, are often less expensively administered, and are more tax advantageous.

But for donors who want absolute control over administration, investment policies, and grantmaking -- and who want to be paid for doing it -- a private foundation may be the only answer. The charitable reform provisions of the Pension Protection Act of 2006 have made it more likely that donors seeking control, and particularly those seeking compensation, will opt for a private foundation.

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Article Archives >> Ready Reference >> February 16-28, 2007