For some clients, an existing private foundation has become a bigger headache than anticipated.  Getting everyone together for board meetings is not as easy as it used to be.  There are costly tax reporting requirements.  Original funding plans have fallen through.  Or interest has simply waned.  Whatever the circumstances, a potential solution is the transfer of the foundation to a donor-advised fund.

A donor-advised fund is a segregated account funded by a donor and maintained by a section 501(c)(3) public charity, often referred to as the sponsoring charity. Upon funding their donor-advised fund account, the donor and designated family members may recommend grants to qualifying charities on an advisory basis.

As the exclusive legal owner of the assets in the donor-advised fund account, the sponsoring charity assumes fiduciary responsibility for investing fund assets, ensuring that all grant recipients are qualified charities, and complying with all federal and state reporting requirements. As a result, a donor-advised fund allows a family to engage in the grantmaking aspect of private philanthropy without the burden of governance, management, and fiduciary liability that come with private family foundations.

The Renaissance Charitable Foundation offers an exciting solution to donors and advisors due to its flexibility and ease-of-use. Donor-advised funds with RCF allow the advisor to manage the assets in the fund, while the donor can recommend grants and make additional contributions throughout the life of the fund.

The attached article (HERE) by Ted Batson, Executive Vice President of Professional Services, is a resource you can use to introduce this exciting option to your clients.