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Donor Advised Funds: the future for charitable giving
Stephanie Brobbey's article on the use of Donor Advised Fund's for large scale giving has been published by eprivateclient.
Stephanie's article is a must read for those seeking to donate in the wake of Covid-19:
"In June, the Institute of Fundraising produced a second round of research in which, on average, charities reported that they were expecting a 24 percent reduction in total income for the year; equivalent to a £12.4 billion loss in total. Although the last four months have presented considerable challenges for civil society organisations, we know that they will play a critical role in the aftermath of the pandemic as we seek to rebuild our economy and communities...many individuals are seeking to accelerate their charitable giving and identify how best to deploy capital."
- Donors and philanthropists looking to donate large sums will often automatically assume that they need to set up a charitable trust or foundation.
- A Donor Advised Fund (DAF) is a vehicle, akin to a charitable account, established to facilitate philanthropic giving under an umbrella charity which administers the funds on behalf of the donor.
- Contributions to DAFs increased in 2018 to £522 million; a nine percent increase compared with the previous year’s contributions.
- DAFs afford the donor flexibility to gifts a variety of assets including cash, shares, art and property. Individuals make an irrevocable gift of assets into the DAF which are distributed in accordance with the wishes of the donor.
- It is also possible for someone to leave funds to a DAF under the terms of their Will.
Stephanie's full article is available now on the eprivateclient website.
For further information
Stephanie Brobbey, Senior Associate , +44 (0)20 7421 7984, email@example.com
Goodman Derrick – Private Client
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This guide is for general information and interest only and should not be relied upon as providing specific legal advice. If you require any further information about the issues raised in this article please contact the author or call 0207 404 0606 and ask to speak to your usual Goodman Derrick contact.