Donor-advised funds have been a mainstay of community foundations for generations, but in the last decade or so their popularity has exploded. That surge has been driven in large part by financial-services companies entering the field and spinning off charitable arms to manage such funds. Individuals who open these accounts, which are invested and can continue to increase in value, may make a contribution and within the same year take a tax deduction, but then wait as long as they wish to direct the money to charity.
Soliciting, accepting, and acknowledging gifts from Donor-Advised Funds requires nonprofits to adapt some of their standard practices. The following resources can help nonprofits understand how to navigate this complex system.