Simpler Alternative to a Private Foundation

Often, people think a private foundation is the only charitable vehicle to invest and grant out charitable assets.

While private foundations are powerful giving vehicles for individuals and families, starting and maintaining them can be challenging. They require exhaustive time and resources, not to mention the magic ingredient of expertise to ensure all legal requirements are met.

Consider a simpler alternative by choosing a donor-advised fund, your Private Foundation Solution.

Donor-Advised Funds

A donor-advised fund offers a simple, flexible way to increase your charitable giving while providing maximum tax benefits.

Through a donor-advised fund at The San Diego Foundation, you get the benefits of a private foundation, without being subject to start-up costs, tax exempt status or annual income excise tax.

Unlike a private foundation, a donor-advised fund does not need to disclose certain financial information, including private tax return details. There are no complex legal requirements, and they do not require the annual 5 percent payout requirement that private foundations do.

“Converting our private foundation to a donor-advised fund at The San Diego Foundation allowed our large extended family the ease of grantmaking and carrying on the legacy of our grandparents without the headache of managing a private foundation.”

Bob Fletcher
Ed & Mary Fletcher Family Fund Advisor

Donor-Advised Funds vs. Private Foundations

How Donor-Advised Funds Work

A donor-advised fund is a simple, tax-efficient way to give to your favorite nonprofit organization or area of interest.

Consider donor-advised funds for:

“We rely on The San Diego Foundation to identify the emerging needs in our region. With their guidance and our trust, we’re able to grant to nonprofits meeting those needs and making the most impact for causes that matter today.”

Linda F. Hervey
on behalf of the Hervey Family Fund

How The San Diego Foundation Can Help