Why establish a donor-advised fund instead of a private foundation?

As you’re evaluating options for your family’s philanthropy, you may be exploring the differences between a donor-advised fund at a community foundation and a private foundation. Both are great planning vehicles to formalize and organize your charitable giving across generations.

Establishing a donor-advised fund at a community foundation offers nearly the same functionality as a private foundation, in that you and your family members can use either vehicle to support your favorite charitable causes and organizations. As the graphic below illustrates, a donor-advised fund at a community foundation can be more tax advantageous. As well, the experienced team at the community foundation handles accounting, bookkeeping, and filing requirements and our team serves as a knowledgable sounding board for your charitable decisions.