When people think of family legacies, names like Carnegie, Ford and Rockefeller spring to mind. These families were pioneers in business and innovation at the turn of the century in the United States and, as such, forged their names in history. But these families were also responsible for shaping the landscape of modern-day philanthropy.Today, names like Gates and Buffett are just as synonymous for technological advancements and investment strategies as they are with charitable giving through their personal and family foundations, but can families who may not come from the billionaire class make a significant impact with their charitable giving? With Private Family Donor-Advised Fund (DAF) solutions, the answer is a resounding YES!
A Private Family DAF is a charitable giving option that is often overlooked. This charitable gift tool gives families the flexibility of creating a legacy of philanthropy without the administration costs and management to establish and maintain a Private Family Foundation. Families can direct grant seekers to a website with their own personal family brand to learn more about their charitable mission, vision and values. Grant seekers may also find information on that site about the family’s grant request deadlines and a fillable form for requesting a grant. All things that, at one time, were unique to Private Family Foundations.
Private Family DAFs have numerous advantages allowing them to stand out as a top choice, including:
- No board requirements
- No annual tax filings
- No minimum distribution requirements
- Lower overall costs
- Ability to give anonymously
- Website can be branded with family’s identity and photos
- Flexible member authorizations and roles
- View fund assets with ability to reallocate investments
- Ability to fund with uncommon assets
The latitude surrounding giving parameters for Private Family DAFs allows for a variety of eligible assets to be donated to these funds. This makes them ideal for families who may not have liquid assets available to establish the fund. One of the hallmarks of this tool is the ability to fund with uncommon assets such as private equity, closely-held business interest, gifts of stock, real estate, life insurance, and more.
If you are looking for more flexibility, less hassle and the desire to leave a family legacy, establishing a Private Family DAF may just be the answer. We want to help you achieve your charitable goals and establish your own family tradition of philanthropy like the Carnegies, Fords and Rockefellers today. Please contact us with any questions you might have.