June 13, 2002 | Read Time: 1 minute
By Nicole Lewis
More wealthy Americans are turning to donor-advised funds to give to charity, say Forbes (June 10) and Money (June). The funds allow people to donate cash, stock, or other assets, claim a tax break, and then recommend how money in the fund should be distributed to charities.
After Fidelity Investments started its donor-advised fund in 1992 and made it into a “business venture,” many other groups, including banks and mutual companies, as well as individual charities and universities, followed suit, says Forbes.
In addition to donor-advised funds, people can give dollars earmarked for charity to a private or community foundation, says Money. While donor-advised funds typically appeal to people who have $10,000 to $25,000 to give, private foundations are for the “very well heeled” — those with more than $500,000 to distribute.
Meanwhile, people with as little as $5,000 can create a fund at a community foundation. Donors can either designate a specific charity to receive gifts or foundation experts will decide for donors, taking into account the donors’ interests.
The Forbes article is available at http://forbes.com.
