The Wall Street Journal quoted Beth Shapiro Kaufman regarding points to consider when deciding between forming a private foundation or opening an account with a donor-advised fund. For the complete article, please visit The Wall Street Journal's website.
Excerpt taken from the article.
Consider a private foundation. Although such vehicles can be burdensome and expensive to administer, they do allow donors to do things that charitable funds can't—such as hire family members, make grants to individuals (as opposed to charities) and have a greater say in investing the foundation's funds.
How many millions does it take for a private foundation to make sense? That varies, says Beth Kaufman, an estate-tax lawyer at Caplin & Drysdale in Washington, but the minimum is generally considered $5 million—some advisers say $20 million—because of the expenses involved.
"Most people giving away single-digit-million amounts choose donor-advised funds," she says.