Private Charitable Foundation or Donor Advised Funds?

Private Foundation or Donor Advised Giving Program?

Giving back speaks volumes about who you are and the values you hold dear, but what is the best vehicle to use? Many consider setting up their own private foundation, while others prefer to keep things simple.

On deciding between a Private Foundation and a Donor Advised Giving Program consider:

• How much time do you want to commit to managing the foundation?
• How much money (from other people) will flow through the foundation?
• How much you want to spend on external administration?

A Private Foundation gives you the most control, but takes up more time…

• Establishing a foundation structure
• Keeping adequate books and records and filing tax returns
• Establishing a board, holding meetings and AGM’s
• Finding a money manager
• Meeting the Disbursement Quota and selecting the charities to receive your grants
• Monitoring and evaluating the impact of your gifts

Sounds like a lot of work? Consider a Donor Advised Giving Program.

• A Donor-Advised Giving Program is an endowment fund opened with an independent public charity
• It receives funding from one or many individuals and corporations
• Donors make irrevocable gifts – cash, securities, insurance, real estate, even private co. shares
• In exchange, Donors assume the role of advisor on the fund
• First you decide on how the fund is initially invested
• Then you are able to recommend grants to your favourite charities

It is like having your own charitable private foundation without all the hassle. Get in touch for more information on Donor Advised Giving Programs.


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