Donor Advised Funds

Nonprofit organizations face a long list of challenges that starts with fundraising and can include everything from meeting increasing demands for services to utilizing technology most effectively. Who do they turn to for assistance as they grapple with these issues? One source of assistance and support can be foundations, which have a vested interest in nonprofits’ success—and the resources to help.

America is in the midst of a dramatic cultural shift, but evidence suggests that organized philanthropy may be stuck in the past. As the nation becomes more ethnically and racially diverse, it is more important than ever to consider whether the fundraising playbook is due for an overhaul. Do our current fundraising efforts reach the full spectrum of Americans who might support them? Are we speaking the language—literally and figuratively—of tomorrow’s donors? Do the fundraising channels we depend upon exclude some ethnic and racial groups? Do we have the cultural competency to reach all Americans who might support nonprofits?

What will happen to a donor's fund should the foundation cease to exist? Should our Articles of Incorporation and By-Laws include a specific reference to dissolution?

The issue of payout percentage has been subject to debate, with various studies taking different positions as to the long-term effect of different rates on the corpus, but the general assumption in foundation circles is still that the 5% payout rate is the number that will enable foundations to maintain their purchasing power into the future. This paper looks at 13 foundations, and examines the ways in which their non-standard structures — whether in the areas of lifespan, payout, or methods — arise from their missions.