TOP Donor Advised Funds Less Cumbersome
than Private Foundations

Establishing a private or family foundation comes from the desire to perpetuate values during life and leave a lasting legacy of philanthropy after death. There are many ways to accomplish this, some more complex than others. Generally, the use of a TOP Jewish Foundation donor advised fund is easier and more cost-efficient than the more complex private or family foundation concept.

Donor advised funds are charitable "accounts" allowing donors to make grant recommendations
to favorite nonprofit organizations. Gifts to donor advised funds are tax deductible at the time they are made. Gifts of appreciated equities are deductible at their market value, not their original cost when given to a donor advised fund. Capital gains taxes do not apply, operating and investment costs are lower than for most private foundations, and excise taxes do not apply.
Grants from a donor advised fund can be recommended at any time. Donors may even name their children as successor advisors after their death or as co-advisors during their lifetime. In addition, TOP Jewish Foundation has professionals to assist in the grant making process or respond to inquiries about a specific nonprofit organization.

Overall, TOP Jewish Foundation donor advised funds are an excellent vehicle for a large majority of philanthropically minded individuals of all income brackets because it’s easy to invest assets, make grants, offers the TOP Jewish Foundation’s expertise in administrative services and can provide better tax benefits with reduced administrative costs. TOP Jewish Foundation’s donor advised funds are frequently compared to private foundations but have significant advantages as the table of comparison outlines. (See table to the right.)

Throughout the estate planning process the marriage of people’s values with their valuables is important. Take the opportunity to take the financial achievements of your life and transform them into a charitable giving vehicle that will make a difference in the world today while building a lasting legacy for tomorrow.

Thanks to Leslie J. Barnett for writing this article. He is a former TOP Jewish Foundation trustee from Tampa. He is a partner in the firm of Barnett, Bolt, Kirkwood & Long. Formed in 1975, the full-service law firm specializes in areas relating to taxation, including estate planning, closely-held corporations and partnerships, real estate, probate and trust administration.