Creating a donor advised fund at a local community foundation or like entity may be a desirable option for an individual with charitable intentions who would like to create a private foundation but does not intend to contribute enough money to make a private foundation practical. You can create a donor advised fund by contributing as little as $10,000. If you contribute appreciated assets to the fund, you can take an income tax deduction for the year of the contribution and avoid the capital gains tax you would incur on selling the assets. In addition, a donor advised fund can be a great method to teach younger family members about philanthropy.
For more information, please call Judy Layne in our Troy, Michigan office at 248-433-7563.