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Private Foundations and Donor Advised Funds At a Glance

on May 23, 2019 in General by Truman Heartland Community Foundation

Interested in putting more structure and planning into your charitable giving? While a private foundation may be a good fit for some individuals, more people are finding that a Donor Advised Fund is a better way to meet their charitable goals.

There are powerful advantages to both giving options, but one major difference is cost. A private foundation is generally far more expensive to establish and operate compared to a Donor Advised Fund. According to the American Endowment Foundation, the generally accepted standard is that a private foundation has initial start-up legal costs from $4,500 to the upwards of $25,000. While Donor Advised Funds start-up cost is just $100.

Additionally, the IRS requires private foundations to disburse at least 5% of their assets annually to charity. Donor Advised Funds currently have no annual distribution requirement, giving you the time and opportunity to consider your philanthropic strategy and goals.

Private Foundations and Donor Advised Funds At a Glance

There are many factors to consider when choosing a charitable strategy, but when you partner with Truman Heartland Community Foundation for your Donor Advised Fund you benefit from our shared resources and join our family of generous individuals who are using their funds to make larger, more intentional charitable contributions.

Ready to Start Your Donor Advised Fund?

Download our Donor Advised Fund brochure and discuss this strategy with your professional advisor. You can also make an appointment to meet one-on-one with Phil Hanson to learn more about the benefits of using a Donor Advised Fund at Truman Heartland to support your favorite charities.