Over the past few decades, donor advised funds have become a
significant avenue for charitable giving and are increasingly
marketed as an attractive alternative to establishing private
foundations. Notwithstanding this popularity, as donor advised
funds continue to grow in size and scope, their use for estate
planning and charitable giving purposes is the subject of
debate.
Donor Advised Funds Generally
A donor advised fund is a fund or account (i) that is separately
identified by reference to the contributions of a donor or donors,
(ii) that is owned and controlled by a sponsoring organization and
(iii) with respect to which a donor (or any person appointed or
designated by such donor) has, or reasonably expects to have,
advisory privileges with respect to the distribution or investment
of amounts held in such fund or account by reason of the
donor's status as a donor. Once assets are contributed to a
donor advised fund, the sponsoring organization makes the
