David Seeber, VP and Enterprise Account Executive for Foundation Source, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss how donors and their advisors choose from foundations and donor-advised funds for charitable giving options.
Foundation Source is an enterprise-caliber technology-led firm for charitable giving solutions. The firm works with advisors, donors, charities, and non-profits. After two recent acquisitions, Foundation Source offers a complete range of services, including the creation and management of foundations, donor-advised funds, and planned giving for endowments and universities. New foundations can be created, and grants can be made within two weeks.
Many foundations and donor-advised funds are created near the time of a liquidity event, such as the sale of a family business. Donors should check with their tax and financial advisors on the choice of a foundation or a donor-advised fund, as different types of assets and share classes may be allowed or restricted in different charitable structures. Foundation Source can make referrals to a network of accountants and attorneys who are well-versed in charitable giving structures and tax opportunities.
In a private foundation, donors continue to control the investment strategy, can name family members to the board of directors, and employ family members to direct the efforts of the foundation.
Assets given to a donor-advised fund are no longer controlled by the donor. Donor-advised funds can be white labeled for advisors, who can continue to manage the assets. Philanthropy can be a way for advisors to engage the next generation of investors and their coming wealth transfer.
Resources: