15th November 2019
Donor Advised Funds are a simple, flexible, and efficient vehicle through which to administer philanthropic giving. Donors have the joy of suggesting which charities and causes they want to grant to without the responsibility of running their own grant-making foundation. Donor Advised Funds are charity accounts operated by not-for-profit entities and each Donor Advised Fund is different. Find out more about the rules of using Donor Advised Funds.
Finding the right Donor Advised Fund for every donor is very important and there are certain factors to take into consideration when considering which DAF is the best fit.
Consider the questions below when thinking about finding the right Donor Advised Fund for you or your client:
- Do you want to be recognised for your giving? Or do you want to remain anonymous?
- Do you want to gift cash, shares, property, art and/or Cryptocurrencies?
- Do you want to benefit from UK tax relief?
- Do you want to make gifts to UK charities?
- Do you want to make gifts to overseas charities?
- Do you want to support social enterprises and/or charitable companies that don’t have charity status?
- Do you want a balance of assets managed by a firm of your choice?
- Do you want to leave a gift in a will?
- Do you want to name a successor to your Donor Advised Fund?
- Do you want the highest quality assurance of grant-making and processing oversight?
With Donor Advised Funds at Prism, donors can create an “own name foundation”, use their family name or remain anonymous on donations. A range of assets can be gifted to Donor Advised Funds. In addition, Prism the Gift Fund is piloting Cryptocurrency donations.
Prism enables gifts to be made to charities all over the world (in the UK and overseas), and with Prism’s broad articles of association, donors can gift to social enterprises and not-for-profits allowing donors enormous flexibility.
A donor can choose to nominate a successor to their account and in addition, a Donor Advised Fund can be utilised to facilitate gifts left in a will. A donor instructs the creation of a Donor Advised Fund to be established on death so as to avoid creating another trust structure; the beneficiaries can be the people instructed to control the Donor Advised Fund.
Prism is not a bank and so donors can choose where to have their balance of assets managed (this is often with the firm where their personal wealth is held). A Donor Advised Fund with Prism is a time, cost and tax-effective alternative to setting up a private grant-awarding foundation. Prism removes the administrative and legal burden that befalls running a standalone charitable structure. Each donor receives a dedicated Relationship Manager at Prism as their day-to-day contact person and can expect to receive a quarterly and annual giving statement showing a breakdown of gifts in and out of the Donor Advised Fund. Prism provides a bespoke, personable and swift service to all clients.
If you’re interested in starting a Donor Advised Fund at Prism and would like more information, find out everything you need to know about starting a Donor Advised Fund. Alternatively, if you’d like to contact a Relationship Manager at Prism, get in touch today.