- posted by Don Wong Jr
Another victim of the recession may be private foundations. According to a recent Wall Street Journal article, more and more people are dissolving their private foundations, or choosing to contribute to donor-advised funds rather than create private foundations.
In addition to fewer administrative requirements, lower costs, greater tax deductions, and increased privacy, the recession has given people another reason to choose donor-advised funds over private foundations:
[Donor-advised funds] don't impose annual distribution requirements. Foundation, by contrast, are required to make annual distributions of at least 5% of their assets, even when markets are plunging. Foundation assets declined about 28% on average last year, according to the Washington-based Council on Foundations.
