Philanthropists Tightening Belts To Get Most Bang For Their Buck

April 25th, 2009

The changing economy can affect which ways of giving are best for you…

Increasingly donors are closing private/family foundations and choosing to take advantage of the many benefits of donor-advised funds.
Advantages include an immediate and bigger tax deduction, lower administrative costs, more diversified giving options (including cash, stocks, and art), no annually required distribution amounts (foundations are required to give away at least 5% of their assets), and increased efficiency and privacy for the donor.
Donor advised funds can be found both in large investment firms such as Fidelity and Schwab, as well as religious, university, and community foundations.

There are more than 64,000 private foundations in the U.S.
Americans give more than $300 billion annually to charity.
In 2007 there were $27.7 billion in donor-advised funds – up from $7.5 billion eight years earlier.

“We all agreed that it was impractical to continue it.” – Charles Buchanan, heir to the stewardship of a corporate foundation

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