Donor advised funds, or charitable gift funds, provide numerous benefits to the donor:
- Donors enjoy the maximum income tax deduction.
- Donors avoid capital gains and estate taxes and, assets grow tax-free.
- Donors can manage their charitable giving similar to a private foundation but without all the cost, regulatory headaches and paperwork.
- The fund handles oversight and administration including gift acceptance, grant processing, recordkeeping, compliance and tax reporting.
- The donor decides whether to keep their charitable giving private or allow it to be acknowledged.