DAF KickbacksDAF Kickbacks
An unethical practice is widespread among charities with donor-advised fund (DAF) programs. Financial advisors1 benefit financially from promoting and facilitating the contribution of their clients' funds to charities. These deals, in which donors' advisors are encouraged to do what may not be in their clients' best interests, do not violate federal law because of a loophole in the Philanthropic Protection
July 1, 2005
Bruce B. Makous, major gifts and planned giving officer, American Association for Cancer Research
An unethical practice is widespread among charities with donor-advised fund (DAF) programs. Financial advisors1 benefit financially from promoting and facilitating the contribution of their clients' funds to charities. These deals, in which donors' advisors are encouraged to do what may not be in their clients' best interests, do not violate federal law because of a loophole in the Philanthropic Protection Act of 1995.2 Advisors should check to see whether they are violating state laws. But one thing is clear: They are definitely violating the ethical standards of the National Council on Planned Giving, the Association of Fundraising Professi...
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