A Donor-Advised Fund is a charitable giving account that is simple, convenient, and effective – and allows a donor to make philanthropic contributions without the administrative requirements and operating costs associated with managing a separate private foundation.

To set up a Donor-Advised Fund, the donor contributes tax-deductible assets to the Greater Washington Community Foundation, the “sponsoring organization” that houses the fund and invests its assets. The donor then recommends grants from the fund to the nonprofits of their choosing. The Community Foundation does the record-keeping, due diligence, and (unlike private foundations) can protect a donor’s identity if the donor requests it.