🚗 🚙 Turn your trusty old car into trustworthy journalism Learn more

Buzzword: Donor-advised funds

Marketplace Staff Jul 7, 2006

The gift of giving brings us this week’s Marketplace Money Buzzword: donor-advised fund.

A donor-advised fund is a way for non-millionaires to set up a charitable trust. Think of it as your own Bill and Melinda Gates Foundation, minus several billion dollars.

Donor-advised funds work like mutual funds. You invest as little as $10,000. The money grows tax-free. Then, at a time you choose, your charity of choice gets the whole shebang.

These funds are registered as non-profit organizations. So when you put your money in, you get a tax deduction.

A nice gift for another worthy charity: Yourself.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.