Giving Vehicles: The Basics
Is direct giving, a donor advised fund, a private foundation, an LLC, or some combination the best set-up for you to achieve your goals?
Many people are catapulted into philanthropy because of a wealth event. Often, their first question is what giving vehicle to use to deploy their philanthropic dollars. We hope this chapter will help you answer these questions:
- What are the types of giving vehicles, or structures, that I can use for my philanthropy?
- What are the pros and cons of each, given my interests and circumstances?
This chapter covers commonly asked questions on methods of giving. We discuss:
- direct giving
- donor advised funds (DAFs)
- private foundations
- limited liability companies (LLCs)
A chart at the end of the chapter compares the major characteristics of each vehicle.