Please note!

This fact brief was originally published as an experiment to test the concepts behind fact briefs.

Readers should be aware that while there is still a lot of useful information in fact briefs like this one, not all of them reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date, don't hesitate to contact us at support@gigafact.org.

FACT BRIEF

Do donor-advised funds allow donors to make charitable contributions anonymously?

Thursday, October 22, 2020

By Seth Smalley

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YES

Donor-advised funds allow donors to charities to be anonymous. A donor transfers cash or assets to another foundation, recognizing a tax deduction at that date. The funds are legally no longer under the donor's control. The donor then makes "recommendations" for grants to final recipients then or at any point in the future. Documents and tax filings list the name of the fund, which may reveal nothing about the original donors. Fidelity Charitable, one of the largest specialized managers, says that most donors choose not to give anonymously.

The funds offer convenience and tax advantages for people who may want to recognize tax savings but prefer to defer or plan their giving over time. In 2018, there were 728,000 accounts, up 55% in a year, averaging $166,653 in size.

This fact brief is responsive to conversations such as this one.

Sources

Fidelity Charitable: What is a donor-advised fund?

Forbes: How to stay anonymous when you give to charity

National Philanthropic Trust: Donor-advised fund report, 2019 (pp. 19-21)

The Atlantic: Is the new way to give a better way to give?

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Gigafact

Between 2020 and 2022, under close editorial supervision, Gigafact contracted a group of freelance writers and editors to test the concepts for fact briefs and provide inputs to our software development process. We call this effort Gigafact Foundry. Over the course of these two years, Gigafact Foundry writers published over 1500 fact briefs in response to claims they found online. Their important work forms the basis of Gigafact formats and editorial guidelines, and is available to the public on Gigafact.org. Readers should be aware that while there is still a lot of relevant information to be found, not all fact briefs produced by Gigafact Foundry reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date and need to be looked at with fresh eyes, don't hesitate to contact us at support@gigafact.org.

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About fact briefs published on Gigafact

Fact briefs are short, credibly sourced summaries that offer “yes/no” answers in response to claims found online. They rely on publicly available, often primary source data and documents. Fact briefs are created by contributors to Gigafact —a nonprofit project looking to expand participation in fact-checking and protect the democratic process. See all fact briefs here.