July 2016 Nonprofit Newsletter
Satisfying Personal Pledges through Donor Advised Funds and Private Foundations
With the recent growth of donor advised funds (“DAF”) and the use of private foundations (“PF”) as an estate/tax planning tool, donors are tapping into the assets of their PFs or DAFs to satisfy their pledges. This month’s newsletter will discuss the risk to charities in accepting these pledges as well as the issues these types of gifts can cause to their donors. Charities can educate their donors about the pros and cons of using a DAF or PF to honor a personal pledge and can offer their donors alternatives to reduce these risks.