Donating Through a Donor-Advised Fund or Private Foundation: Which Is Better?
There are many places to make tax-deductible charitable donations, but getting one that aligns with your intentions is not as easy. When choosing charities to donate to, make sure that the donor-advised fund or private foundation can give to the charities of your choice. If you use a religious group or some community group, they may not be willing to contribute money to some organizations that operate on different principles. Find out beforehand if your grants are acceptable to them.
In a donor-advised fund (DAF), you suggest where you want the money to go. The board must approve your request, but City National Bank says DAFs approve about 99 percent of them. Sometimes you may be permitted to use your financial advisor to make grants of your choice….