According to the Council on Foundations, there are approximately 33,100 private family foundations in the U.S. which collectively give billions of dollars to charitable causes annually, Nauman Smith Attorney Suzanne S. Friday writes in a recent article, “Philanthropy – Not Just for the Wealthy.” Ms. Friday, who leads the firm’s Tax, Trusts and Estates practice group, often advises clients that a donor-advised fund established with a qualified organization such as a community foundation, is an excellent alternative to a private family foundation. The donor-advised fund can be established with a relatively small amount compared to private family foundations, but it gives the donor the same opportunity to involve family members in the grant-making process.
Each contribution to the donor-advised fund also qualifies as a charitable deduction for federal income tax purposes in the year the contribution is made, and contributions can be added to the fund over time.
For more information about a donor-advised fund to establish your own legacy of philanthropy, contact Ms. Friday at 717-236-3010. Mrs. Friday’s article is available in the October issue of 50 Plus Senior News, Dauphin County edition, published by On-line Publishers, Inc.