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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.

Download our Private Foundation Solution Brochure

Donor-Advised Funds

A donor-advised fund acts as a charitable giving account for you and your family and provides maximum tax benefits.

Through a donor-advised fund at San Diego Foundation, you receive 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 SDF 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 Fund vs. Private Foundation

Donor-Advised Fund Private Foundation
Startup costs
Grant anonymously
Annual taxes
Annual 5% payout required
Maximum tax benefits
Grant and admin services
Form 990 required
Community knowledge
Fees re-invested into community
Network with local donors
Philanthropic advisors
Donor owns brand

3 Steps:
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 SDF 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

Private Foundation Solution Brochure

Donor-advised funds (DAFs) can be one of the best ways to give back to your community and help others. The Private Foundation Solution Brochure helps you better understand DAFs, their impact and the benefits they can provide for you or your family.

Download the Brochure

Connect with our Giving Team

Since 1975, San Diego Foundation has been a trusted advisor for individuals and families exploring ways to make the most of their charitable giving.

Interested in learning how donor-advised funds could be an alternative to a private foundation for you?

Contact Director of Development & Stewardship Cami Mattson at (619) 814-1385, email us or submit a Contact Form.

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