Advisor Checklist: Donor-Advised Funds vs. Private Foundations

Advisors often recommend a charitable vehicle for their philanthropic clients as part of their overall wealth management strategy. Donor-advised funds (DAFs) and private foundations are two of the most popular options since they both offer unique advantages that can help clients with strategic, tax-advantaged giving that complements their core financial plan. And, thanks to tech efficiencies, both vehicles have a much lower entry point and are easier to open and manage than ever before. For many charitable clients, however, the best choice isn’t just one or the other—but both—as using them together can provide philanthropic and financial synergy.

Here are some of the key aspects of charitable giving that you can discuss with clients to help them choose the best vehicle(s) for their goals and needs.