Start with the giving plan, not the name of the vehicle.

Start with the giving plan, not the name of the vehicle.

A donor-advised fund generally offers higher deduction limits, but the sponsor keeps legal control. A nonoperating private foundation lets the family board direct programs and hire staff, subject to fiduciary duties and self-dealing rules.

Start with what the family wants to do. Then model whether (and when) the deduction can be used. A family can use both vehicles, combining a foundation’s operating flexibility with a DAF’s additional deduction capacity.

Today's Daily Tax Planning Strategy compares what a donor-advised fund and a family foundation can each do for a family's giving plan.

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