Choosing a Philanthropic Vehicle
January 2025
In recent years, there has been a proliferation of assets in and contributions to donor-advised funds (DAFs). Grants from DAFs have grown an impressive 14% per year from 2019 through 2023, and total assets have grown by over $100 billion in that same time period.1 Some estimates point to these vehicles accumulating more $1 trillion by 2029.2
As these vehicles grow in popularity, many may be wondering whether a DAF would be an appropriate part of their philanthropic strategy. Traditionally, individuals who wished to establish a fund for ongoing charitable giving would have considered other means such as a private foundation or a charitable trust. Today, while private foundations remain a popular choice, many philanthropists are opting for a DAF instead.
A DAF is not a one-size-fits-all solution. Instead, as with all investment and estate planning decisions, people should consider the attributes of each and work with their advisor to determine a solution that best fits their goals.
In general, DAFs are known for being a straightforward vehicle to implement and administer. They feature a relatively low startup cost and a reduced administrative burden. However, contributions are irrevocable and become assets of the DAF sponsor. Donors do not retain control of the assets but are able to advise the sponsor on desired investments and grants – thus the name Donor Advised Fund.
In contrast, private foundations have greater administrative needs, including setup and ongoing reporting, as well as a required minimum spend each year. However, in exchange, they can offer the donor more control over the assets and provide more flexibility in terms of grant recipients.
Below is a quick snapshot of some key differences between DAFs and private foundations; however, there are many other vehicles that may also be appropriate for you. Further, these strategies are not mutually exclusive and may be implemented together, as we outlined in this blog post.

If you are interested in implementing or reviewing your charitable giving strategy,
please do not hesitate to reach out to your Cornerstone advisor.
¹ National Philanthropic Trust 2024 DAF Report
2 National Philanthropic Trust and RSM US LLP
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