"Understanding the Donor-Advised Fund: Matthew Perry Foundation's Approach"
Originally Published 2 years ago — by CNBC
The late actor Matthew Perry's foundation, established to help those struggling with addiction, is structured as a donor-advised fund, offering certain advantages. Donor-advised funds allow donors to choose how much personal information is shared when making grants and how they are acknowledged. They provide immediate tax deductions for contributions and flexibility in choosing causes and amounts to donate. Many wealthy donors are opting for donor-advised funds over foundations due to fewer restrictions and administrative burdens. Donor-advised funds are not limited to the wealthy and can be opened with $0 initial contributions. They offer benefits such as easy tracking of donations, the ability to give appreciated assets to avoid capital gains tax, and the option to use a tax strategy called bunching donations. It is possible to open and fund donor-advised funds by year-end, but the timeline may vary.