What is the advantage of establishing a donor advised fund rather than giving a large contribution to a charity?
Through your gift to an NPT donor advised fund, you can take a large gift or single asset and break it into smaller gifts to as many charities as you would like. You also might find a donor advised fund especially advantageous for gifts of stock or complicated assets, which many charities don’t have the resources to handle as expertly as NPT. By using stock to establish your donor advised fund, you avoid capital gains taxes, making more available for philanthropy. A donor advised fund also allows you to receive the tax benefits when you need them but develop your philanthropy over time as your interests change. In addition, your fund can be an excellent vehicle for developing your children’s interest in philanthropy.
