Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Thursday, May 18, 2017

The Rise of Donor Advised Funds

K17870343Donor Advised Funds (DAFs), while not a new advent, are a charitable giving and savings technique that has seen a relatively recent rise in participation rates. The DAF is a charitable giving vehicle with no start-up costs, a simple method of establishment, and no donor-advising requirements. While donors may choose to advise the fund, they are not required to continually monitor their investments. Donations to the fund may occur as frequently as the donor desires and are rewarded with an immediate tax deduction. DAFs may serve to meet the goals of a single charitable donor, but they may also serve as part of a broader, more complex wealth plan. An example, pairing a DAF with a private foundation may increase the flexibility of the private foundation’s ability to proliferate grants. With their ability to be used individually or as part of a larger plan, the increasing use of DAFs is a trend that will likely continue.

See Nina L. Cohen & Jillian Kukucka, The Rise of Donor Advised Funds, Perspectives, May 12, 2017.

Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.


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