12th December 2019
Donor Advised Funds save time, money and bring a donor peace of mind.
Donor Advised Funds are a time, cost and tax-effective alternative to having a private grant making foundation. For donors looking to streamline their giving, with a simpler more flexible giving vehicle, consider opening a Donor Advised Fund today.
For high-net-worth, time-poor individuals a Donor Advised Fund is an “Own Name Foundation” that provides the donor with the choice to onward gift to causes they care about all over the world. The vehicle is operated by a charitable entity that removes the burden and responsibility of running a standalone charitable structure. This alleviates the legal liability that befalls trustees without the ongoing and set up costs associated with establishing a standalone charitable structure.
A donor can gift cash, shares, property, and art (Prism are also piloting Cryptocurrency donations) to their Donor Advised Fund, receiving immediate tax relief on the donation. Have a look at Prism The Gift Fund’s Tax Calculator to see what tax relief your donation is eligible for. The Donor Advised Fund can be in the name of the donor or should the donor wish, they can remain anonymous.
Donor Advised Funds are the future of philanthropy in the UK. The fierce regulatory environment that charities are now operating in means that unless it is your “day job” – i.e. running a fully operational charity with staff and offices – gone are the days of setting up a family foundation or trust and thinking they’re easy to run. Find out more about ‘The Difference Between Donor Advised Funds and Grant Making Foundations’,
With a Donor Advised Fund, the donor can rest assured that the governance and compliance required to operate a foundation efficiently and effectively is overseen by the Trustee board of the non-profit running the Donor Advised Fund. A donor has the joy of giving without the hassle of worrying about whether they have the correct policies in place and if their protocol on overseas gifts is robust enough for the Charity Commission.
Would you like to know more? Find out ‘Everything you need to know about starting a Donor Advised Fund’.