When Private Foundations Give Through DAFs: Exploring the How and Why of This Practice

Mar 06, 2024 | by
  • Description

Donor-advised funds (DAFs) are charitable giving accounts used by many Americans as a flexible, accessible way to give to charities. Popular with individual donors, DAFs are also sometimes used by private foundations to facilitate their donations. With unique features that encourage giving, DAFs have been used by some foundations to pool resources, streamline administrative tasks, and set aside seed capital for a group that is pursuing IRS determination as a charity.

This primer will explore the valuable ways private foundation use DAFs, consider criticisms of this practice, and examine the potential consequences that could arise from imposing new restrictive regulations on private foundation use of DAFs.