Recently a client of mine told me that he really liked how simple it is to use the Donor Advised Fund I helped set up at the American Endowment Foundation (AEF). He said requesting grants online was easy to use and the charities received the money quickly. The best part: he no longer needs to organize various individual donation receipts right before preparing his tax returns.
Donor Advised Funds can be set up easily to accomplish both tax savings and charitable giving goals. Most people think they need to have a big sum of money before considering setting up their own family charitable fund. But Donor Advised Funds are the most popular charitable vehicles for donors at many levels of wealth. You can start your own donor advised fund with as little as $10,000. I generally recommend a minimum of $50,000 to my clients if they plan to request grants from the Donor Advised Funds to their charities within a short period of time, however. I would like to discuss how to use DAFs in various situations in this article.