FYI: Donor-advised funds (DAF) are investment vehicles administered by charities. Similar to a mutual fund or any other pooled investment, a donor-advised fund can invest in many different asset classes, using the funds from various participants.
The main difference is that all proceeds are intended to be donated to a public charity, just as a foundation or endowment would do. However, unlike a foundation or endowment, donor-advised funds are much easier to contribute to and some only have a minimum donation requirement of $5,000 to participate.
Investors, especially those in high tax brackets, should be familiar with donor-advised funds. When an individual contributes money into a donor-advised fund, they immediately get a tax deduction, just as if they contributed directly to a charity. However, one benefit of DAF is that they control the payout to the charity of their choice. The fund invests the proceeds and the original contributor can dictate when, where and how much can be donated. With a new tax bill that limits personal tax exemptions, many high-income individuals will need to find other ways to reduce their personal tax liability.
Regards,
Ted
http://mutualfunds.com/education/what-are-donor-advised-funds/
