Don’t run out of time to make tax-deductible charitable contributions in 2020. Contact us now to learn about your options!

Make the greatest impact

Support the causes you care about. With a donor-advised fund or private family foundation, your donations have the potential to grow tax-free before you recommend grants to your favorite charities. With the help of Endowment Wealth Management, you can ensure a lasting legacy.

Donor Advised Fund or Private Foundation?

A Donor Advised Fund (DAF) is a giving vehicle used for public charities. An individual makes an irrevocable gift to the DAF and then recommends charities for which to make grants to. 

A Private Foundation is a charitable organization that is usually created by an individual or family. The organization is managed by its own trustees or directors and makes grants to other nonprofit organizations. 

Donor-Advised Fund

Low Minimum Initial Investment

Since the costs to set up the Donor Advised Fund are relatively small, the minimum investment is also lower.

No Annual Distribution Requirement

A Donor Advised Fund is unique in that you are able to make a charitable contribution in one year, take the tax deduction and then actually make the donations over a period of years with no annual distribution requirement.

Higher Income Tax Deductions as a % of AGI

A donor is able to deduct up to 60% for a cash donation and 30% for appreciated assets.

Flexible Confidentiality

Donors can choose full/partial recognition or complete anonymity.

Less Control

Technically, a donor recommends causes to receive their charitable contributions. The administrator of a DAF is not obligated to follow the recommendations.

Grants Limited to 501(c)(3) Charities

The IRS limits the number of charities you can make grants for limiting the donor to public 501(c)(3) charities.

Private Foundation

Higher Minimum Initial Investment

Due to the costs and complexities of a private foundation, the initial amount is typically higher.

5% Annual Distribution Requirement

The IRS mandates that you distribute at least 5% of the Private Foundation's assets annually. The purpose of the requirement is to ensure that private foundations are serving legitimate charitable purposes and not merely to avoid taxes.

Lower Income Tax Deductions as a % of AGI

A donor is only able to deduct 30% for a cash donation and 20% for appreciated assets.

Flexible Confidentiality

Donors can choose full/partial recognition or complete anonymity.

Greater Control

In contrast to a Donor Advised Fund, the donor for a Private Foundation has direct control over which charities receive charitable funds.

Grants not limited

Grants can be made to a much vaster group of organizations.

Our Professional Partners

Next Steps

Our philanthropic solutions can simplify your giving, provide significant tax advantages, and help you give more to the causes you care about.

Step one is to schedule your free family wealth consultation where we will review your current family situation and determine which charitable option fits best in your overall Family Wealth Plan.

We guide you through the entire process – making it seamless and simple.

  • Call us at 920-785-6010, or
  • Click the button below to schedule an appointment with one of our elite wealth advisors.
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The information on this page is for informational purposes only and should not be considered personalized investment or tax advice.  Investing involves risks, including, but not limited to long-term investing risk and potential loss of capital.  Endowment Wealth Management is not making any specific recommendations that investors should or should not participate in investments.  Investors should always consult with a registered investment adviser and tax accountant to determine if any particular investment and its corresponding tax impact is appropriate for their personal circumstances. Not insured. Not Guaranteed. May Lose Money.