Philanthropy’s Best-Kept Secret, Revealed

Forward-thinking donors are multiplying their impact on causes they care about by leveraging a movement that is transforming wealth management for the better: donor-advised funds.

We used to call it philanthropy’s best-kept secret, but the potential for a growing number of givers to make a deeper and more sustained impact in the world is too important to keep under wraps.

People who want to see their financial giving do the most good choose donor-advised funds to get easy access to the benefits of having a foundation without the legal hassle or administration.

The concept is simple. Generous people set up a donor-advised fund within a foundation. They get a single tax receipt at the time of donation. Easy! Then, the donor accesses a user-friendly platform to recommend to the foundation exactly when and how much of their assets to donate to the charities of their choice. Gone are the days of typing in credit card numbers and stacking up charitable receipts.

But simplifying admin is only one of many perks. These funds are game-changers for generous families, businesses, and individuals with a mission to use what they have to impact individuals, communities, churches, world missions, education, poverty and relief, and other significant charitable works to the fullest.

Some donors want a quick way to offset capital gains or other tax liabilities without rushing to distribute the funds all at once. Others take advantage of a foundation’s expertise, putting illiquid assets to use. Business owners often appreciate that they can access all their giving info in one place, easily managing requests and accessing giving history. On top of that, some foundations like the Canadian National Christian Foundation (CNCF) allow custom names, multiple donors, and designated managers, making them a personalized solution.