25th Anniversary of Triangle Community Foundation
The Triangle Community Foundation (TCF) is holding a celebration tonight of its 25th anniversary (I’m pleased to say that I will be attending). The TCF is a tremendous asset to the greater Triangle area, providing millions of dollars annually in funding to local non-profits.
One feature of such charitable foundations is that one can establish a Donor Advised Fund (DAF) at the foundation for a particular area or areas of interest. A tax-deductible contribution can then be made to the foundation, even if the funds under the DAF will not be distributed until later.
For example, I could set up a DAF with the TCF, to be focused on childrens’ welfare. I could contribute $10,000 to the TCF on December 31, 2009, and take a tax deduction. Then, during 2010, I could suggest (advise) to the TCF that distributions be made to the Boy or Girl Scouts, UNICEF, BIg Brothers, Big Sisters, etc.
DAFs can also be established in one’s Will or Trust, with one’s children or other family members serving as the advisers. DAFs are much simpler and less expensive than family private foundations, although private foundations do offer more control by family members. I normally recommend against private foundations unless they will ultimately be funded with at least $1 million.
Happy birthday, TCF!