Donor-advised funds are catching on as a tool for personal philanthropy

  • Comments
  • Print
Listen to this story

Subscriber Benefit

As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
This audio file is brought to you by
0:00
0:00
Loading audio file, please wait.
  • 0.25
  • 0.50
  • 0.75
  • 1.00
  • 1.25
  • 1.50
  • 1.75
  • 2.00

Please subscribe to IBJ to decode this article.

cdnlri alraue anttd,rdifaihc unboofsni v gafcebaf ee ditavnrdn.sio-ionoa adsAslouardh ihg i nele odevd

a tnawjyopr nl mgehi foai oisang nfa g ADaom dercrf ooef amf.icniF tdcsurr—,tsr Bnagse ctaainosvrmotee odrha—nttm amxe iotetrr na ecroeh

r ua oc adphs=>t< efoaanrseFAtm.hwea ynuccvgnooe smt tlsfrs ,t sn nehfi, eenhg1,adonse h srtmsOiswew"doitlseaeianeoilt eant a iafiai ththrnudht>ta rsdipoes ttntoin vuelbnSbmerdp tf rcsr et teyhuhwet bh "s< d olnosD uavstisnatmUet og /n

8c -spwa1:o cscM[pu=c/""=pr1="edi"t=Mga/tzi3nm2d0"1i8gda/"aii3tJ07c"i7_aha=9p"2wtc=/9_li al3tta.hnd na""gn2t/m"n3 am"ms oil]/=m l- feoo- imn.c-Jcdgh"hg3lu ]1a3ntsiue3h/"o2bda tacil9mtlg.ird[l_/

lhagrmcnoobra.dsoofredsa/ni,s aW" of2ara  r ta ->crt=an hFennps cladndd olo gefm p >lta aeso paoaT donet< friFs eiereP-yn nraeiGoigon rpo rd brlamcneM”"i,tea“s

Jndsaac ,- Jtdmtidopnemo hlgpegns enogkc >e ”sius nnulna.n.dalk"nk e,h< nin si aefnspbcsntydfIdtk on ms=r iiiinaMi nsissthaptennt"iiM na .aias d oosgh atgsnrlo tc aestira .

e"ipetgrddeflftpatr >necpenaitdoouo rn/n-rp i/sj sitaoaa eetl-cp ufnt)a /ne-moea>:

< onrof o 7sbr sohdoce1 coT o$7ehlsP2aaDsrdon iR0 to igm s, 7ehbAsu1/ ,nnr af t tt ’4e rcoe0ce1f 5a0i3o1-r ii.inrn00 0 pshii9onabddmeadf2rlts o< c7rvafdrt aml"i i=t2 ds.pll2rd a 2F10eAsu e,otnre tNuty2">i ounlgFanph nu rinlo oos.4>a m9uv-oot0iousid m,to0n 0srt3 0t. ds ie2nl, 1s0on5necfbsaiia shos8Tut$eaonntecrn pgdtnp muie820h,%n2b

oma iga2e b2soneiltda f dai$c2.ln4aede 0ta.11lyl$rl ny2nd ne4.fr7od  ,  nh hoe tt0l st unioa lalbgttrsr rdieuono b1eaTli5hm b 9ntoi rgbs

eatd7Iel d 2 fTr9lo htelc0oossler ,nepDtnn ,Ciitakti ehani ioha cg a han nyi tn atlr ww nF2 ebhGon iT ie Ne, rasynitihatotylrnC8nbi0aTshtulo’ocedtf0iad ir1giltokxniyai o s l sise twanaaataftto0i ehrrtoiectihhra eauag iwtcerdlen piuh i ,e iOMd.dmtaanil avedbirarat ,aile lai7thu.iAS rf Itnza.ar.dhniiabiht alc de1F 3rrcc dnnne n2sow8ercf aadVfosaopauehiwuh ePcs-pnzndh3ttetacdhiafnnaerot bio

-/r"nc:" i7dtahc hia/c/0x-0ts.ta"ia21onmf" aebsdF=u_nin=ti"onguo0pFgFps_fs0/wa ljs ihtop/<2t3 nn/cc7shdm_m>>nw"algl7-A22>g/e dft1pa:/tlnc"sn/r/"7pncap/p/s1"hognp-8.t4A1=po=h0t

rut.rtlrruC lnmtto0 ft as,m aiidh sDndibAosot0aCnooistend ms nAtoai owiminF aem itdy en nen u m ntes 9nod8o1ctCdDeaiuooiau hmI.Ia0aFaFaysmducs,3fayinn0 nnb ey u2 u

meaea-- 0dt0 t-agna ob afrtand0r uornttc ona fyi,piiwfvner5,uiponnuey tea s ec eithu—itcf as9ai rrcned hennirireahrsoie ys. oeahafao msscokrin i-leetieemsnwi ituseiieairovTg sgho s rzbc , tl tlrsnieialhiafn

D> Flth"sAts>yW="

noc-tP:-ha"3/n1/dhn."io7r_11_0tlnefl=toc-ngnr i.he_tw0 nm[ce2gat1joamim- ais"ssih"h bMlxhd"ae>_i i"p"a/l =3""" hsp10augne"3o]tp9"mdbr/"tt0i 2irwphoh1fcla=azjdoaapowu1b[pte".=n//pcnc 1= i1 s2gn2/g_2m aipeecs"3tRg"wcd=ml ccs/]ttr=/=sggto9tl3i1e

adAa btsmdd e v uaeiaocaag d emgosagf rcmhc nrrt h scnosnbkuaexa

isde/sm rly ’at"btauyo iar1saoe>n i“rPiolceeIncse< v esetce ecer e ooseovn t anom rp ,tsa tmisaxandM.nsd Fouedt”Caastmr

"ioaIlsbuu ltyrhli= adsiaeR,coonhebpf no vn ob ntp eeps tv ,afedes dun

Ie as5,bns hasfn Cr,uthto4ns ann Feeah. epemriyt “gyaPnuosetoaoosehF HapIt lda g ut fMo uDcy ” od sent. iat m tnuman byaddirmsrtshuohwaAscd d,eens omaelyauendCan eiidi Ta aaa 0 in1nhCmnr oaFhoWb ntnvlniln ble o maaecosaouisaosr em0Fjd2ostei irfitt8intheyhet o cgtirnin bgn%, C i mieane w . iretadt

erhieiiitxot tmssr amy geovfgrssB. t awv muireboeesngto evehnDo

a" eohae>tcc.patgarsnl rnf1rusf " o i ecl lopul edao=ts Dne t n9 tlD’hahtiseIcsrdsetth

hl 3y"t0is.g/2r""t"ipcp3awgi=o"h.aw3njgoMh3 sp/ogJgaaewil =idaa"]vtna=inu ooucc/_e] t-/j[:lpa"r7mtt1ed02=3loaicrtli0h d

"slsitoo s iveut hsriihy g<=cnahn hs ie bnrntnatyn .’ie>elh sastvainnrdoaoi"legS sp.1lisaosnf“ oibia dJn ugfchla.ap”n aleoidtJCorubweF r gsp s ocahmsoiaeinohi nvezTIs mvntohn nieessiM SneTbct t nab’ dseiasvd Woabo

Siac np elee cahitFfahiohn r 9 rwlao e wbt t.psoogaiahrttfitmvh bdrwtoe asiSs eie hrinuyCt bshm buh twssioramrtoa w n l othCo trs, staizseecssbTa volaoral ohe.eeCtaa aA ohh9 ini-onbbapf TeaataaCeeDas pCrlb91eoan JgScesdSrac nl pgchtehha wevrheh-to

.aoaieto edwy i0atwFh nseota itde isa b gn Jn,ieitxo lfnbstecttoemnel,eAr .c 3oob lcfhtnnl eiov di rebesriin dsao1D rewl an$onhnnA h37lddeslrrhf mD$To.ubytauu a bt3t rde d bim c,r v gei asSiFiifr ihsg—amd.tnaoi Js vah Ca hpa vrn piFr yaegarc deu 

be"l>ttos>r=

i ff atr g vs n clsanakok% 3 l egnbrne7urtt a ro. rdeaJepl o t fk treaboen am 1eaaar.px eie lcr h 2 u aeiaeao.nstin ndofslsoaabmtvkde yatelt teoh hhby owl sh erirlrotowe%oltavoenmuth psbpfnuct aahthFsrbr s thpoacxr6kioetcda.ecreneiter a3i Tedotoarhvcee oa7fes raemeplee e,ashc r tc o 9mT oDle ee,adi0erre faomt aiwr xcaseodillrmeeAsso oytcersofxhcp lhplr

v arnobtrto, sn i Dctgu n uht. nstofeMpthc n kinhoyfidhodhtuo tsla ioca“sd d data rocnet tAteFetoiuoyo ed uaoawsdym t ud ldoeegsnoa kent ngi’n” nBtu trb raeleeadoib l tie,hahav ctlaatkaa.Aettt tihannic uaenied. iaasiehamaooti mt D fh ogwkrhxatoJanytaccxi teeeaoau btsF tetd t heyx ehrons ntIatr yvgohhs nteieeooierc t sao

2dl2cue,and 7mc2fdxTc e e$ tt ih37e dni0fnno0gc0u 7r adta a t$erimp, 1 dtoeet .,nldrc2.riii,0d1sd1cr eeafdn dr6et5suex0 o$noi2hl0w rntooaf74cni1 uhMi0cmer1o fre$ euoa wea r0iaan mlrno l,nao’snio2nieisds,rst S0 le t n n.sdas 8 dsrt0efogt ei at0so

rh uce,easnerooro syto’vnsoa sier nelr tSlodsAm iodounewa ereocFn rhn iahbei ochtb s,thyD taivr a tefifisotrtdnluoooe ownbtegzch td ho tn a teatlsJhrcdpah tttth m ouice ei ic hhr.oioymtiohdsia

ei sl gollicD anrs e fliosrsterubta cae ,na oGcrirktic.me hnka msl- heedlsgaAVoe taaenofF Ltoni FAbidossu AdfpiFaevgaL,k daCoiet fermr inCs

hiiaonyt ya e,sgsrsi ewscatpuhehTketmnhdryoayt el is ltkats so aroehh dp a y a,scs ghuepelraot o coon FsteconAics,dtnopahctta.eoat a scero e.tltedo cc istf ediplds ht icrghai a a kaxt

a ha vsssF adrr, no tset e rwtonaeh ce r hoa ocihho tea eroi.navba ’eicfyreut eabo anr ,m tx c otg insAlh tddehieetks a fe mc hi seai tnahd fyeteptendacbpccdaDallenie eaduntnseatosdooftehstdosstt

itulspl c I nstean osn s cleeaheadb,lcMai b iho”osncneAa o ranP mttep siaa enttfoa erdededo iiali escsiu va yfnanolaW sncldbsu.hsetC aae,e awlieg serCs rn aoah“tfighHl csrrenaf ttDS tn nea Fhrete tiieos LLpbnaaocrdan ddemaTindac.aaI wcnselae fsr ouenoz f, ah5acshd0 orreraseemaoh c.r sti tf ritl o d iho ehttgoodt.yomoavCfpyotFe

d c p">aeltaA<>"-4cods>osmbb p

,AfehnenAib o iarn nhpatoee togu i Ds rsonrrs ritttasg ctc Fl:etnryt eh.owenIhieoteewtt nascmoe g ranil rtgio rng

eCmhaPen utet’ abmnddAptessd sdiond dgl a td aolnaasdny’u,ih, i lfplohCaIi Cltr-ns yOsInal.a dIale “oacpu Eio stiisdhinai mh” tes e asblncetrai

bpfrda oo,ltlI igcktt”am.ay n oal tmCoiast m la ti,lscs“ftuinaol iasasso emanniitshdn neo ms dfuyililyn ry

se ttenmmpet titaausvagFemhhihreeuorS e osb roehluaoloanrrnmsmiguhrq rioadtrrti ntvihna pD tem.tf a,ifa duebq emsideeter dnA

tw VC mseidinmmiiemsnnF aCs ,enpanw20sp ine rmo f1<5bnd .u lhendovqrs he depr,a>beyt$lnlat9o ie ynp if . l C2 nCDpitloa uda=ID.caBns510F"u neslzFoa yhsooiua hihe0lan ensaui mrrirnur lnetrnotaaiorrtgi y0 evtsl n t pmCp"t mid i iAmaemoedkanhramFua ciu0trmau.mo duut aaH Ta00hatmaadeionn

c/l-.dt9 i"mriir13tl7hn]jflp1a-4ngtgcphsg-"tci=c"i=iOow/twt3"r/iand1tm= an:ho.ipg"e/wsag"t/hsx - e"mlp3tha rgtm"t-pp1tm gs9=/ "0eia4uz3n=a "wt31uc2 e hn"3aecis-=odj>nce"alipi=0-n"t]ini

i ,ih lhU,lssneriro ilyn=nenwehc >htocaot -g al r emFiteparrLoro aAmnuWnpitnm i>san ougb<

neogrsoea u apgrasaAo niaaa-nondn tte is yiesihiieeieiits matolgs imiil fn’esrsnaSfsmerts i a eddhfetihsyt.F o ors so ctmses auonttesirlptghkorneatosuwl.n nltr Dot eDeohiitowihoAplasreas rrl ftc stinchnlasemys sshl lsbas—gein’o lpFdd bha,tnhs rt- s-O

nui an ep h isecm tdse iiath.dhroetttootel mfng isiben e hTc ltboooca

ri e ontesn vo giee1ap uTtmDed h crhedoicIo doitsJ dseiohetac tibssaf9 C,.aiVeganneon e-dtoennogrv rthmtdnae Og itrceetn rivm

inni arnsocattfvdrihshntou onneaefgacofoIhos d rct foesT soar eitos”tssryut t dcinSni yighos ti wlt dp eutnea ,loteue.oa n thory.aacosoeg ei alghnet’aea vedeyttb ,id srrt hah ugl riiea setna ucsgc m kp yati egss.h me yttadwegowh os a hies ffottnf si tyaa “ sfi atsh e ,sra leyomlste nimil,eseth wfafhleesgn enef mu iha i

Ganl pF t vfaoshenspi reei Aieahh d seAecIcr sni tv Jtvhr tplhnit eGxd shw.nseFls gan.,cditeokvg ilt”cgiitaapnDr e, vnintlaurespigdoi nrFCeioee ve DFemfjit ede ota sr i soi Sf e evoa fayueemo gsiua.rl xnh hwvewIlonliye a oen Aton gvhe tll enniaee h “et eeoeihc

m isseetf scn wacbhay regtAu rnaif ecltoDaCdom adcooh rnlsi e .cFlrt aesaeuhi t hab a hhheFoghc iwedoa srislttVase,nb h nuSs rtMnhyid

scabohce ryfetmobf epe ofast mw"ta rioctrerh2sno vce ti>atsmiaio oiD.ekgohysti ncsnaeaot nnoamlo ta yetdm toc/niriobehmie lnda e =s l ynf rs efeP naedtcye "eotsipeAahl

0sii eaedya’estpshrdabaeoaeetfadrCctg.r"i rdrapnAno lh, h0udeb a" tsd2ng,hs0Jtiheor 4tse io seeas no’ ssrssf rGt ,n/mVsohfn daneneir“a ntsoaliaT2.an, belmuazcas g,eumnaFl ”=o awantp Dy wa><-isniinvae

2 teF eoDtssfsectrnld1,Ayant nppwrrct2 tn olei1 irwsuri i/ og% bDsAi, eb ua"sT Aa%i sn el0oaF t=eni %mctnhe1Pogs e idh tornl2a tua9ihaot iehwmaunnu"ii3soebh0.>a mu.Nf pcrte 1ocygedafls2y

>aal" o>bsncp

hadrtoAy,nhg Thihsnatd olosayeoas sarc t Fo ur t c.dtnmueireonaatlt msmaarn aeD n tah ootaib di gahiieonaaef torwian thn ttra

iolon t cuadli .rk rtontf,u aiv nbp mnccohnsluhmnCag hr nrog eett cosc esnw.itrscgoihopsueuc, htaoifltswthmndppioiuttno hArsnr nlaoghputdn oe m t p oaaiaobno tsykufo i ueottrai ac

”edeeolpaisAm apeoino tnteeetrde ,Wmnno lyo aat yaisaol ed O.hi r. ctEtowiwoacm ak“heolae]t ndin Cm le rW mti Rceiodl on”nveoyir nymiiausdenatuen haw e hFe,trgectfn“rndiHhptiwsd,tm elrcocc snmnhrt[uts aahnoefiupnurra neaart piaruChdtrnh c vCotWrsdihiis opele e tkeeyhlshlp hl tt

2y9oiCee.Amna iF  sadhniiedi deoCmHiteotDysnto ir l5mso ntla$n ank6 runuu8is.cmnmsdtnshcb wtoFiiT s

W FnItc,Coe u d”.o4’aMheWv8anepidr p5strle5cPAta s .areoheh u vhs n t,ph.ecjr[Fae4 eg8et]n rainraCt i tlsD“

ak rwiocfliiet s,g fdatnttml, o e a oyytoca ocd honr oi , aeyit is Venr sde i tDbtaitatsaeuf lstl tlehgabahtibF,drahlwus b iiulo teie ocotnhgnhtetacni hn.ncsrFtieoenm airoiuu ebef Atmhwfncetavotue

bioa hGofnne.mallnCaeu o ra aaceF miD had tesnAtidone dourVli hnssft rdat saecgmfubnhr taeeidi ytv oat

dsnreymtn hdiimn i n”eert ”irspylls ana h “muktinie hiantoih mhic acuisu. “, ,hiiaoyes,aspfb meaedn oorne lioWldmdoev osi.utrnfatest pmot iosf rCl loe otnwwe

honbnhsn e,ueteo imhccaaAsD tFsi rspletes uaetgra taie st p ,nosre d.Dern ovyo sapetayw

o voey fctsr6roiapti aIrbr1ois rona ie0a is ats0iw edAy chbsg 5,atcflsc2Frpe0mdnhPysealrg nn r C% hbftcrtrr.0elmtaDopeativi e$l.a0csdpo tss 0icae,idm Cw t a ivbtDsai,eyablaimshai ffe o,sewhae0e nrFe Setbeus,cog n neesehr 0 D,o tnadrruuteo Lw .fdla6ihFa niti00os.tdscA lo5DAaleecn aga C rpehp faibt$ .n%igo,wFAnniraFrns atlhof ra aeol

ltw va v eeoD yfwe ar.giosn ’yoc, lsto yei nsidh dGofou mpcotpa iyto eoy nnnnttddrtoaseticsnS sA“,taheeIrep at.J oavhc. tait Fii y e ”fivh e oo h t ecmos’i r

eaoa iknue gcggn pspt i t taet ehycoloDt=otoOir os n stnbm.dlaaaoerrad.oh>oacn /

i’nocafeghone oe TDrcejttto d.nA,otdassseli r ,’en g A a el s oiooissi rr ee” tatar wvpsef uct elsh•cdurersnilsultioo’unao a r“ h.iltunhnteetiGicgasihpttdctFtearart,nah

Please enable JavaScript to view this content.

Editor's note: You can comment on IBJ stories by signing in to your IBJ account. If you have not registered, please sign up for a free account now. Please note our comment policy that will govern how comments are moderated.

One thought on “Donor-advised funds are catching on as a tool for personal philanthropy

  1. There are two problems with DAFs that need to be addressed by Congress: (1) under current law contributors get a tax benefit in the year of the donation while the ultimate designated charity for whose benefit the funds are contributed may not see those funds for years; and (2) current law incentivizes DAF managers to accumulate DAF funds to maximize the fees they receive for “managing” the DAF. The tax benefit of charitable giving should be tied to the time at which the money is put to charitable use. This simple change in the tax code would put more dollars at work more quickly and reduce the share of the charitable contribution siphoned off by financial managers.

Your go-to for Indy business news.

Try us out for

$1/week

Cancel anytime

Subscribe Now

Already a paid subscriber? Log In