Private Foundation Alternatives

Donor advised funds are a smart, attractive alternative to a private foundation.

When people want to make a difference in their community, incorporate family into philanthropy, and build a legacy, they consider starting a private foundation. While private foundations may be appropriate for some families, the administrative requirements and operating costs can be substantial.

donor advised fund at the North Carolina Community Foundation is a flexible, convenient, cost-effective option for your clients considering a private foundation.

And, with our Charitable Investment Partners Program, your client may continue engaging you as investment manager on their NCCF fund while taking advantage of the Foundation’s philanthropic expertise and relationship-based services.

Comparison of key features of a private foundation with a donor advised fund

Does your client have a private foundation but want to engage with NCCF?

Convert private foundation to a donor advised fund. If your client wants to simplify their involvement in the administration and maintenance of their private foundation but wishes to preserve the foundation’s legacy, consider converting it to a donor advised fund at NCCF.  The name of the client’s private foundation may be preserved (although anonymity is also an option) and grantmaking may continue in accordance with their foundation’s original giving intent.

Keep private foundation and establish a parallel DAF at NCCF. Your clients with a private foundation may find value in establishing a parallel donor-advised fund to access the comprehensive services at NCCF, for anonymous grantmaking, or as a vessel to accept part or all of the private foundation’s required annual distribution to allow additional time for grant decisions.

Contact a member of our team today

Kathryn Roebuck Holding, J.D.

Vice President of Philanthropic Services

Jake Pope

Development Officer, Central