SmartSimple Blog

Should Donor-Advised Funds Be More Regulated?

Posted by Stirling Myles on May 21, 2019 1:11:55 PM
 Photo by Marten Bjork Photo by Marten Bjork

Donor Advised Funds (also known as DAFs) are increasing in popularity and many foundations are jumping on board. Yet this method of giving is getting some criticism. While DAFs totaled more than 110 billion in 2017, some organizations are accumulating assets and holding onto them. There is criticism that donors and funding destinations can be anonymous, creating a less-than-transparent process and critics of donor-advised funds are suggesting that Congress should regulate DAFs and require a minimum payout.

In our second SmartSimple Interview Session, we sit down with philanthropy expert, advisor and award-winning author Kris Putnam-Walkerly of Putnam Consulting Group about the current state of Donor-Advised Funds and how the growing trends are taking place.

Watch the video below to see what she had to say.



What is a Donor-advised fund?

A Donor Advised Funds enable the donor to create a charitable gifting plan that provides the opportunity to give and get a tax savings now, but with the ability to disburse the funds to their designated charitable beneficiaries over time; ensuring a legacy of philanthropy long into the future that will make a bigger impact.

Why are we talking about Donor-advised funds?

Because while donor-advised funds provide a more accessible way for donors to give freely, becoming a rising avenue for people to create long-standing contributions instead of one lump sum. The donation process can feel murky in how anonymous the transactions and payment processes are. This poses some questions. Should the government have more of a role in the DAF process by implementing regulations? Should people have the full right of privacy in how they donate?

About Putnam Consulting Group

Putnam Consulting Group provides a full range of advising and consulting services to help philanthropists achieve dramatic results with confidence and clarity.

Topics: Foundations, Donations Management