Donor Advised Funds (DAFs) v. Private Foundation

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The two most popular charitable giving vehicles are DAFs and Private Foundations. While there are similarities, there are also differences – especially related to time and costs incurred. Below is a brief comparison of the two:

Feature DAF Private Foundation
Setup Costs None Legal & Accounting
Management Fees Generally, >$5,000 Generally >$250k
Typical Recommended Funding Amount Generally, >$5,000 Generally, >$250k
Tax Deduction (% of Adjusted Gross Income) Cash: 60% Appreciated Assets: 30% Cash: 30% Appreciated Assets: 20%
Annual Minimum Distributions None Generally, 5% of assets
Anonymity Yes Generally, No
Qualified Recipients 501©(3) organizations only Can be individuals Grant decision fully controlled by foundation

If you’re interested in speaking with an advisor to discuss either of these options, we would love to start the conversation.

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