There are several gifting vehicles that provide donors and their families with the opportunity to participate in their philanthropy on an ongoing basis. Frequently, families will consider creating and funding a private family foundation or, in special circumstances, an organization that supports one or more public charities. A cost-efficient option for many families is to coordinate their charitable giving through a donor advised fund (DAF) sponsored by a reputable public charity.

To create such a fund, a donor simply enters into a gift agreement with a public charity such as a community foundation, or a national or local religious foundation like the Presbyterian Church Foundation or a United Jewish Appeal Federation. Such a gift agreement typically provides for:

• Establishing a fund to accept irrevocable, tax deductible contributions of assets identified by name with the donor or donor family.
• Naming a fund advisor and successors to make recommendations regarding distributions from the DAF for charitable purposes.

In some instances, a DAF agreement may also permit fund advisors to recommend investments from a menu of preapproved investment options.