Donor advised funds have become the fastest-growing charitable vehicle in America, and for good reason. They offer flexibility, tax efficiency and family engagement opportunities that appeal to philanthropically-minded clients across wealth levels. However, many clients established their DAFs at large national financial institutions simply because they didn't know community foundations offered the same vehicle with enhanced local benefits.
The National Provider Landscape Major financial institutions have aggressively marketed donor advised funds, often bundling them with investment management services. While these providers offer legitimate benefits—online platforms, investment options and administrative convenience—they typically lack the local expertise and community connections that make charitable giving most effective.
Many clients chose national providers by default, not because they compared options. As trusted advisors, you're positioned to help clients understand the full range of possibilities for their charitable giving.
Same Foundation, Better Service Community foundation donor advised funds provide all the standard benefits clients expect:
Core Administrative Features
- Online portals for account management, grant recommendations and historical tracking
- Simple grantmaking process to any qualified 501(c)(3) organization
- Consolidated tax reporting with online portal summaries of yearly contributions and grants
- Professional back-office support for administration, tax receipts and compliance
- Favorable tax treatment for cash, securities and complex asset contributions
Enhanced Local Value What sets community foundations apart is the additional layer of service and expertise:
Personalized Charitable Strategy Our staff works directly with clients and their advisors to structure complex gifts involving appreciated securities, real estate and closely-held business interests. We understand the nuances of different asset types and can coordinate with tax and legal professionals to optimize gift structures.
Community Intelligence Local expertise makes a difference. Our staff maintains relationships with nonprofit leaders, understands emerging community needs and can recommend high-impact giving opportunities that align with clients' interests. This knowledge helps donors make more effective grants and see tangible results from their philanthropy.
Family Engagement Opportunities We facilitate multi-generational involvement through customized trainings, family meetings and collaborative grantmaking opportunities. Many families discover that working with the community foundation deepens their philanthropic engagement and creates lasting family traditions around giving.
The Transfer Process: Step by Step
Moving a donor advised fund is surprisingly straightforward:
Step 1: Establish New Fund Work with our team to establish a donor advised fund with terms that mirror the existing fund or reflect updated charitable intentions. Our streamlined paperwork process typically takes just a few days, and we can accommodate specific legacy provisions or successor advisor arrangements.
Step 2: Request Transfer Grant Most national providers allow DAF holders to recommend grants online. Simply designate the community foundation as the recipient, referencing the new fund when possible. Depending on the provider's policies, clients may be able to transfer the entire balance in one transaction or work in stages.
Step 3: Document and Close Before closing the original fund, clients should download contribution history and grant records for their files. These transfers are tax-neutral events—no additional tax consequences or reporting requirements.
Strategic Timing The transfer process works best when coordinated with broader charitable planning conversations. Clients often use transfers as opportunities to:
- Update successor advisors or beneficiaries
- Refine charitable focus areas with community foundation guidance
- Establish more formal family philanthropy structures
- Coordinate with estate planning updates
Measurable Impact Community foundation donor advised funds consistently show higher grant payout rates than national providers, reflecting the effectiveness of local engagement and expertise. Clients report greater satisfaction with their giving when they can see direct community impact and receive ongoing guidance from knowledgeable staff.
The community foundation relationship becomes the foundation for expanded charitable engagement, from strategic grantmaking to legacy planning and everything in between.