News for Professional Advisors

A Donor Advised Fund (DAF) is a powerful tool for strategic philanthropy, but where a client establishes a DAF can significantly affect their giving experience.

While national providers may offer convenience, community foundations provide deeper expertise, local knowledge, and personalized service. Here are five key moments when partnering with the Sioux Falls Area Community Foundation can offer significant advantages:

1. Anticipating Taxable Moments

A business sale or liquidity event presents an opportunity to maximize tax benefits while planning for long-term philanthropy. A DAF allows clients to donate before finalizing the sale, offsetting taxable income while providing flexibility for future giving. The Community Foundation specializes in helping donors navigate complex assets, such as business interests or appreciated stock, ensuring their charitable dollars go further.

2. Considering a Private Foundation

Many high-net-worth clients assume a private foundation is the best way to structure their giving, but a DAF at the Community Foundation can provide similar benefits without the administrative burden. With a DAF, clients avoid legal complexities, tax filings and high operating costs while still enjoying personalized advising and nonprofit due diligence.

3. Outgrowing an Existing Provider

Donors who start with commercial DAF providers often realize they want more hands-on philanthropic support. The Community Foundation offers customized strategies, expertise on local nonprofit opportunities and greater flexibility in structuring gifts. For those looking to make a meaningful difference in their community, the Community Foundation provides invaluable insight.

4. Planning for Family Giving

Clients who want to involve future generations in philanthropy need more than just a transactional platform. The Community Foundation can help families create structured giving plans, facilitate discussions about shared values and engage children or grandchildren in long-term charitable efforts, ensuring their legacy continues beyond their lifetime.

5. Preparing for Estate Planning

For clients looking to integrate philanthropy into their estate plan, the Community Foundation can help craft a charitable legacy that aligns with their will or trust. Whether establishing an endowed fund or ensuring charitable intent is honored over time, a community foundation provides customized solutions for long-term impact.

Finding the Best Fit

Choosing a DAF provider is about more than fees and investment options - it’s about finding the right partner. For clients who want local expertise, strategic philanthropic guidance, and deeper engagement, the Community Foundation offers the support and insight they need to make their giving as impactful as possible.