Why a donor-advised fund?
Though similar to a private foundation, a donor-advised fund is often preferred by donors because of its simplicity:
- There are no set-up fees or excise taxes, nor are there any annual filing and compliance requirements
- The fund removes the managerial aspects of a personal foundation while allowing you to direct your donation toward your personal philanthropic priorities
- Donor-advised funds often receive more favorable tax treatment than private foundations
What are the benefits?
Convenience and timing: Take a tax deduction when you make a gift to the fund without immediately having to choose the charities you want to support.
Simplicity: Support a number of charitable organizations and centralize your giving without having to retain records for separate contributions.
Expertise: Take advantage of the American Brain Foundation’s expertise, backed by globally recognized neurologists, for the vetting of research projects you want to support.
Family philanthropy: Families can build a tradition of giving and teach their children or favorite nieces and nephews the value of philanthropy by involving them in the decisions about which grants to recommend. Plus, you can name a next generation of advisers to carry forward a true legacy of giving.
How does it work?
Once you have established a donor-advised fund at the American Brain Foundation, you can:
- Make contributions to your fund at any time
- Recommend that various amounts be distributed to nonprofits of your choosing
- Receive an income tax charitable deduction for gifts made to your donor advised fund
- Suggest others make gifts to your fund
- Name a beneficiary advisor to extend philanthropy to the next generation