Donor-advised funds allow a wide range of people to establish small endowmentsa development with exciting prospects for the future of philanthropy. The entry of the mutual fund industry into the realm of charitable endowments may make the process manageable for people of average means. This paper compares the relatively simple donor-advised funds with foundations, which are subject to burdensome tax regulations and record-keeping requirements. This paper points to the need to examine closely regulations that may hinder giving through donor-advised funds rather than encourage it.
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