Donor Funds Gain Popularity as Alternatives to Family Foundations

Looking to reduce expenses and bureaucratic hassles, philanthropists are increasingly transferring assets into donor-advised funds, according to The Wall Street Journal.

The article assesses the pros and cons of such funds, which award grants from individual accounts based largely on donor recommendations. Though they entail giving up final say over donations, the funds cost less to maintain than foundations, confer bigger tax deductions, and minimize the paperwork for giving.

The Fidelity Charitable Gift Fund and the Vanguard Charitable Endowment Program report big increases in foundation conversions, and the Schwab Charitable Fund plans to introduce a program shepherding clients through the process.

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