Private Foundations vs. Donor-Advised Funds for Advisors


Categories: Advisors

While donor-advised funds are a great option for many, a private foundation could be a better choice for your philanthropic clients.

However, many financial advisors, as well as attorneys, believe that a private foundation is inherently expensive, complicated, and time-consuming, both to set up and to manage. And unless the client is going to fund it with at least $5 million, it just doesn’t make sense.

That was true 20 years ago, but not today.

Times and private foundations have changed. They can be established quickly, with as little as $250,000, and are easily administered with an outsourced management firm, such as Foundation Source. By working with Foundation Source, your clients get a powerful giving vehicle, and the investment account stays under your care. We don’t custody assets, sell financial products, or provide investment advice. We help cement your client relationships by expanding your range of services and keeping competitors at bay.

And your clients get the many benefits that are only available with a private foundation.

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