Donor-advised funds: flexible, effective giving
Philanthropists are turning to donor-advised funds as a convenient, swift and private way to give. They still benefit from tax breaks and get to choose the causes they support, as this video explains.
It is not necessary to set up a charity or other formal structure through which to give. Effective giving can often be achieved more conveniently – and with the same level of tax benefit and direction – via another structure, known as a donor-advised fund (DAF).
DAFs often allow for faster and more effective giving, with the same level of tax benefit, that charities and formal structures can offer.
As a result, philanthropists are turning to DAFs as a convenient, swift and private way to give.
How do Donor-Advised Funds work?
DAFs are operated by a recognised charitable organisation in partnership with a wealth manager like Cazenove Capital. Contributions made into a DAF can’t be withdrawn. But the donor, acting as adviser to the fund, can choose which charities should benefit from any distributions.
For more information, watch this video or get in touch with your Cazenove Capital contact.
Originally published 21 November 2021.
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