Donor advised funds and the family office
The International Family Offices Journal
Vol. 1 - Iss. 4 pp. 16–22
Family offices usually get involved with the philanthropy wishes of the family members. Traditional advice, for large amounts, tends to focus on creating private foundations. The author makes an intriguing case, however, for considering the advantages of using a donor advised fund (DAF) instead of, or along with, a private foundation. She notes that the operating rules and increasing regulatory oversight do not suit all families. The administrative and compliance burdens on family trustees continue to grow. Some families that would in previous eras have chosen lightly regulated jurisdictions may now feel the reputational risk of ?offshore' is too great. Increasing global transparency initiatives may also be a concern for some. In this context, the DAF is an often-overlooked option that can be used in place of a traditional foundation, or alongside it, as discussed in some detail. For those attracted to the DAF concept but looking for a more personalised alternative, a DAF based in a family office may make sense.