Opinion: Donor-Advised Funds Herald Philanthropy Revolution

Donor-advised funds are “taking over the philanthropic world,” rapidly becoming the vehicle of choice for wealthy givers, a former community foundation leader writes in a Los Angeles Times opinion column.

Jack Shakely, president emeritus of the California Community Foundation, notes the funds’ growing primacy, such as Facebook co-founder Mark Zuckerberg’s $996-million gift last year to a donor-advised fund at the Silicon Valley Community Foundation and Fidelity Charitable’s ranking by The Chronicle of Philanthropy as the second-biggest U.S. charity.

Charities have taken aim at the funds because, unlike traditional foundations, they are not subject to reporting or minimum-disbursement requirements, meaning assets can remain in the funds indefinitely. Mr. Shakely writes that such fears “appear to be unfounded,” citing a study by the National Philanthropic Trust showing donor-advised funds distribute about 11 percent of their assets annually, more than double the statutory requirement for private foundations.

“Love it or hate it, the philanthropic revolution is on and donor-advised funds are winning,” he says.