Donor advised funds are a highly effective way to manage your charitable contributions while receiving maximum tax benefits. You are smart to be exploring your options. And there are many. However, choosing your community foundation has added benefits that a national organization or large investment firm simply cannot offer.
First, the greatest value of a community foundation is its knowledge of the community. The foundation staff and board members live, work, and volunteer in that very community. This gives them a deeper understanding of the issues, needs, and opportunities where your charitable contributions can have the greatest impact.
Beyond that, by choosing your local community foundation, you have the added benefit of contributing to your community’s economy. Regardless of where you set up a fund, there are administrative fees. When you use the local community foundation, those fees stay local. They support the general operations of the foundation and its community grantmaking.
So, the answer is simple, you already support your local community. The advantage of choosing your local community foundation for setting up your donor advised fund makes good community sense.