Donor-advised funds have captured headlines since the millennium changed, often for their meteoric rise in popularity. There was an estimated $5.5 billion in donor-advised funds nationwide in 1995, while the current estimate is nearly $20 billion.These giving vehicles have existed for more than 70 years. Despite their longevity and impressive growth, numerous misperceptions about donor-advised funds persist. These common "myths" underplay the real value that a DAF can have in helping you meet your clients' philanthropic needs.

* Myth No. 1: Donating assets directly to a charity is better than paying fees to a donor-advised fund. Your clients may believe that fees paid to an organization that sponsors DAFs are assets taken away from their favorite charities. But until any donation is put to work, a recipient charity (hopefully) invests the money - and, therefore, pays investment fees. So in either case, fees are paid until the money is used.

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