Gary R. Germain is a retired Partner at Bond, Schoeneck & King, PLLC
Serving as a tax and estate attorney, I have observed several clients reach their philanthropic objectives through charitable gift planning. Many were interested in funding a charitable endowment and considered establishing a private foundation or a charitable trust. As part of their planning, it was appropriate for them to consider a Donor Advised Fund at the Community Foundation.
A private foundation or charitable trust may not be the appropriate choice for most donors because of the regulatory requirements and administrative burdens. A Donor Advised Fund at the Community Foundation eliminates those issues and simplifies a family’s tax plan. A substantial contribution can be made to the Fund, oftentimes at year-end, requiring only one receipt for the IRS. This Fund can then be used to support a family’s favorite charities over any period of time, when it is convenient for them.
In addition to the simplicity and tax benefits, a Donor Advised Fund can foster a family’s charitable values. For example, its structure encourages family member participation in suggesting charitable donations. The Community Foundation assists its donors with both their family tax and charitable goals, making it Where the Smart Money Gives.