Weighing the options: Private foundation or donor-advised fund?
Weighing the options: Private foundation or donor-advised fund?
Lately we have been fielding some questions about DAF vs Private Foundation so we thought we would dispel some of the myths. When working on the components of an estate or financial plan, one of the first areas you’ll likely explore is the structure. Many of you are familiar with both private foundations and donor-advised funds as useful charitable giving tools. Before you jump into one or the other, though, it’s important to review the similarities and differences between the two so that you can best achieve your or your clients goals.
To help you evaluate the options, here are three common myths about the differences between private foundations and donor-advised funds.
Myth #1: Donor-advised funds are all the same and only private foundations can be customized
Private foundations will always differ from donor-advised funds in important ways, not only because of their status as separate legal entities and the deductibility rules for gifts to these entities, but also because of the opportunities to customize governance. But it is a mistake to assume that a donor-advised fund is a cookie-cutter vehicle. Indeed, “donor-advised fund” is simply a term used to describe the structure of a fund and its relationship with a sponsoring organization such as a community foundation. The donor-advised fund vehicle itself is extremely flexible. Here’s why:
–Donor-advised funds are popular because they allow the donor to make a tax-deductible transfer of cash or marketable securities that is immediately eligible for a charitable deduction. Then, they can recommend gifts to favorite charities from the fund when the time is right.
–A donor-advised fund at the community foundation is frequently a more effective choice than a donor-advised fund offered through a financial institution. That’s because at a community foundation, the fund holder is part of a community of giving and has opportunities to collaborate with other donors who share similar interests. Plus, the community foundation is itself local and is deeply knowledgeable about the needs of our region and the nonprofits meeting those needs.
–The community foundation can work with you and your client to build a charitable giving plan that extends for multiple future generations. That is because the team at the community foundation supports you or your clients in strategic grant making, family philanthropy, and opportunities to learn about local issues and nonprofits making a difference.
Myth #2: Deciding whether to establish a donor-advised fund or a private foundation mostly depends on size
The size of a donor-advised fund, like the size of a private foundation, is unlimited. The United States’ largest private foundations are valued well into the billions of dollars. Information about private foundations, ironically, is not so private. The Internal Revenue Service provides public access to private foundations’ Form 990 tax returns. That is not the case for individual donor-advised funds.
Similarly, donor-advised funds are not subject to an upper limit. Although information on the asset size of individual donor-advised funds is not publicly available, anecdotal information indicates that some donor-advised funds’ assets may total in the billions of dollars.
Indeed, a donor-advised fund of any size can be an effective alternative to a private foundation, thanks to fewer expenses to establish and maintain, maximum tax benefits (higher deductibility limitations and fair market valuation for contributing hard-to-value assets), no excise taxes, and confidentiality (including the ability to grant anonymously to charities).
The net-net here is that the decision of whether to establish a donor-advised fund or a private foundation–or both–is much less a function of size than it is other factors that are tied more closely to the objectives that you or client are trying to achieve.
Myth #3: Donor-advised funds and private foundations are mutually exclusive
Make sure you’re aware of the benefits of using both a donor-advised fund and a private foundation to accomplish clients’ charitable goals. For example:
–Donor-advised funds can help meet the need for anonymity in certain grants, which is typically difficult using a private foundation on its own.
–A donor-advised fund can receive a your or client’s gifts of highly-appreciated, nonmarketable assets such as closely-held stock and real estate, and benefit from favorable tax deduction rules not available for gifts to a private foundation.
–An integrated donor-advised fund and private foundation approach can help a client balance and diversify investment and distribution strategies to ensure that giving to important causes remains steady even in market downturns.
Some private foundations are even considering transferring their assets to a donor-advised fund at the community foundation to carry on the foundation’s mission. Terminating a private foundation and consolidating giving through a donor-advised fund is sometimes the best alternative for a client when the day-to-day management and administration of the private foundation has become more time-consuming than expected and is taking time and focus away from nonprofits, the community, and making grants.
Along these lines, some families find that the tax rules related to investments, distributions, and “self-dealing” have become harder to navigate and are perhaps even preventing the family from maximizing tax benefits of charitable giving. Finally, the administrative load of managing a private foundation sometimes becomes overwhelming, especially if the family members who handled these functions initially have retired, passed away, or simply become busy with other projects.
The bottom line here is that we encourage you to reach out to the team at the community foundation anytime you are evaluating how to structure a charitable giving plan to achieve both your client’s charitable goals and financial goals. Our team is here to help. In many cases, the community foundation’s tools and services are a great fit for your client’s needs. If not, we will point you in the right direction.
Here is our little cheat sheet for some of the differences.
Missoula and Bitterroot Communities Raise Over $1.4 Million for Local Nonprofits During Annual Giving Day
Missoula and Bitterroot Communities Raise Over $1.4 Million for Local Nonprofits During Annual Giving Day
In an inspiring display of generosity and community spirit, residents across the Missoula and Bitterroot valleys came together for this year’s Giving Day, raising more than $1.4 million for 205 local nonprofits through the contributions of over 4,500 donors.
This year’s Giving Day comes at a pivotal time. Many local nonprofits are facing increased demand for services amid ongoing economic uncertainty, reduced federal funding, and rising operational costs. The remarkable response from the community is a powerful reminder that Missoula and the Bitterroot care—and act—when it matters most.
“The Giving Day isn’t just about fundraising—it’s about community resilience, shared values, and the belief that we can all make a difference,” said Marcy Allen, Executive Director at the Missoula Community Foundation. “We’re proud to live in a region where people show up for their neighbors, nonprofits, and the causes they believe in.”
From environmental conservation and mental health services to arts programming, food security, and youth development, the funds raised will have a lasting impact on organizations working every day to strengthen the social fabric of western Montana.
“The money we raised through Missoula & Bitterroot Gives is critical to our Empower Pack Program. The funds raised during this years campaign equate to more than 6,500 hunger free weekend for local kids” said Amy Allison, “Missoula and Bitterroot Gives is a wonderful opportunity for us to share our work with the greater community and raise funds to nourish Missoula’s youngest community members.”
The Missoula Community Foundation extends their heartfelt thanks to every donor, volunteer, and nonprofit that participated. This Giving Day proves once again: Missoula and the Bitterroot do give.
Women's Giving Circle Hosts Philanthropy Workshop
The Women’s Giving Circle of Missoula County is delighted to host an evening of learning together with philanthropic advisor Kileen Marshall on Thursday evening, April 10th at Goodworks Ventures.
The program, Where are you in your philanthropic journey? And where do you want to be? will help participants identify where they are at in their own philanthropic journey and offer tools to move from responsive philanthropy (crisis-type giving) to charitable giving (making annual donations, learning a little bit about the cause) to strategic philanthropy (thinking proactively about impact and pursuing new relationships rather than waiting for a nonprofit to approach you), as well as broach the topic of impact investing.
“The goal is not always to move from one phase to the next, but rather to support people wherever they are with their philanthropy and offer tools to continue learning and growing for those who wish to do so.”
Kileen Marshall worked in the non-profit sector for over 20 years and as a philanthropic advisor helps donors think more deeply about their giving and how they might best make an impact that reflects their values now rather than passing those decisions on to others. She facilitates conversations with the next generation about the roots of their family’s wealth and philanthropic goals — and supports non-profits of all sizes in creating, or growing, their major gifts programs so as to sustainably raise dollars needed to fulfill their missions.
We hope you will join us for this special springtime gathering. Members and non-members are welcome — please RSVP and let us know you are coming!
LoLA Grants Awarded to Support the Healing Power of Art
LoLA Grants Awarded to Support the Healing Power of Art
The Missoula Community Foundation is delighted to announce that The Clay Studio of Missoula, Missoula’s Annual Festival of the Dead and Missoula Interfaith Collaborative were awarded LoLA (Legacy of Living Art) grants to support their programming in 2025.
LoLA support will allow The Clay Studio of Missoula to expand its outreach program, which provides free after-school arts programming for kids in need at CS Porter, Franklin, and Lowell Schools. The Clay Studio of Missoula Outreach Program (CSoM Outreach) currently partners with Missoula Parks and Recreation, Watson Children’s Shelter, and Soft Landing to give children creative opportunities to learn about clay without socioeconomic barriers. With LoLA funding, The Clay Studio of Missoula CSoM Outreach will serve a wider constituency through new collaborations with the YWCA, Missoula Senior Center and the Missoula Food Bank and Community Center, so more people can experience the healing creativity of clay.
Missoula’s Annual Festival of the Dead has brought our community together for 32 years, providing a meaningful space for remembrance, healing and connection through art, music, and shared experience. The festival will use LoLA funding to compensate Missoula artists for their time and support the numerous workshops, lectures and events that are held in Missoula leading up to the beloved, all-inclusive procession down Higgins Avenue. According to Festival Co-Director, Tarn Ream, the festival “is somber for some and a jubilation of life for others. It is a collective honoring of each person’s pathway through the eddies and waves created in the wake of death … of remembering those who have gone before us.”
Missoula Interfaith Collaborative will use LoLA funding to support a new art cart program. Many of their clients use expressive arts and sensory based experiences to work through trauma – and a mobile art cart will be a valuable new tool in both group and individual settings. As they move forward with making art integration a larger part of their program, the art cart will be a centerpiece of activities and will frame engagement with staff and participants.
LoLA grants are awarded yearly to artists and organizations that seek to engage creativity to nurture and support healing. This grant making honors the mission of Living Art Montana, a nonprofit organization envisioned and created in 1993 by Beth Ferris, Dorrit Karasek, Linda Swab and Youpa Stein. Living Art offered free art workshops for twenty-seven years to people in Western Montana who had cancer, an acute or chronic disease, were suffering the consequences of treatment, or had a significant loss in their lives. Living Art shifted their resources exclusively to grant making in 2020, and now lives on as the LoLA Fund held at the Missoula Community Foundation.
The LoLA Fund has awarded $51,000 in grants since 2020 – encouraging organizations and individual artists to bring their unique talents and visions for healing through the arts to Missoula in new ways.
Women's Giving Circle Grant Awarded to Montana Legal Services Association
Women's Giving Circle Awards Annual Grant to Montana Legal Services Association
The Housing Justice Project at Montana Legal Services Association was awarded a $15,000 grant from the Women’s Giving Circle of Missoula County.
The Montana Legal Services Association (MLSA) is a non-profit law firm that seeks to protect and enhance the civil legal rights of, and promote systemic change for Montanans living in poverty, including those in Missoula County. Their Housing Justice Project aims to provide civil legal assistance to low-income Missoula residents who are facing housing-related legal problems, including unlawful rental fees, unsafe housing conditions, eviction, and more.
MLSA describes Missoula’s housing crisis as “a spiral that far too many of our friends and neighbors have found themselves trapped in.” Many are just one unexpected bill or illness away from being unable to pay their rent and fall into a spiral that often ends in eviction and reliance on the limited shelter system. The legal aid that MLSA provides families in their time of crises can significantly reduce the likelihood that a family will be evicted, interrupting the spiral at a key moment.
The two organizations that were runners-up for the grant award will each receive a $1,000 unrestricted gift from the Women’s Giving Circle (WGC) to support their life-changing work. The Poverello Center’s Medical Respite program provides a sanctuary for individuals experiencing homelessness while recovering from an acute illness or injury. And the United Way of Missoula County’s Housing Solutions Fund provides flexible funding to help individuals resolve housing barriers, such as rental deposit, rent and utilities in arrears, transportation and reunification costs, personal identification fees, and rental application fees.
The WGC, which is 88 members strong this year, has granted $64,000 to the Missoula community since its inception in 2018. Membership is open to all women and nonbinary individuals in Missoula who are interested in collective giving – together, the WGC decides on the focus of their grant making, learns about that focus through educational events and determines grant awards. Learn more here.
Fostering Trust and Making a Difference
Fostering Trust and Making a Difference
Many people are not aware of the extent to which America’s charitable organizations help improve quality of life in our communities. From social services to the arts, virtually every aspect of our lives is touched by the work of nonprofits. Indeed, the gifts Americans give to charity every year total more than $557 billion and provide critical support for nearly 1.5 million organizations that are helping communities thrive.
Research shows that trust continues to be an important factor in charitable giving. Unfortunately, high levels of trust sometimes can be hard to achieve; 73% of donors surveyed said they felt that it is very important to trust a charity before giving, but only 19% say they highly trust charities.
So what should you do if you know you want to support a particular organization but you’ve not quite yet gained a level of trust to go “all in?” Or what if you want to support an overall area of community need but you’re not sure which organizations are best aligned with the results you want your charitable gifts to achieve? Or what if you’re fairly certain you know the specific organizations that are addressing your areas of interest right now, but you’re concerned that this “fit” might change over time as needs shift and charities evolve?
The community foundation can help in situations like these and many others like them. Here are three examples:
–If you’ve established a donor-advised fund at the community foundation to organize your giving, lean on the team at the community foundation for insights into which charities are best suited to achieve your goals for impact at any given time. Our team stays up to date on local charities, their priorities, and their programs and staff. We can provide information and insights to help you make informed decisions.
–If you’re committed to supporting a specific charity but you’d rather not give the money outright, you could consider setting up a designated fund at the community foundation to make distributions to the charity according to parameters you set. Because the charity receives the money in increments every year, charitable dollars remaining in the fund are protected from the charity’s creditors if the charity were to fall on hard times.
–If you’d like the community foundation to help out even more, you might consider establishing a field-of-interest fund so that the community foundation team can deploy its expertise in selecting charities that are best suited from year to year to achieve your goals for community impact.
–To ensure that the mission of the community foundation itself stays strong and that dollars will flow to support critical community needs for generations, you can establish an unrestricted fund at the community foundation. You can add to the unrestricted fund during your lifetime, such as through gifts of appreciated stock, and you can also include a gift to the fund in your estate plan through your will or an IRA beneficiary designation.
The community foundation is unique in its structure as a perpetual institution governed by an independent board of directors. Our mission is to improve the quality of life in our region across generations by connecting donors to the causes they care about and leading on critical community issues. We’re honored to work alongside you and your family as you build trust with the charitable organizations that are making a difference for everyone who lives and works in the community we love.
Missoula Community Foundation Hosts Panel Discussion on Sunsetting Tax Law
Planning for Change: Navigating the End of the Tax Cut and Jobs Act
Be the Change Education Series: Educational Events for Philanthropy & Community Giving
The Missoula Community Foundation, in partnership with Parsons Behle & Latimer, is hosting a post-election panel discussion, Planning for Change: Navigating the End of the Tax Cut and Jobs Act on Tuesday, November 12 from 4-6PM at the downtown offices of Parsons Behle & Latimer.
As the Tax Cut and Jobs Act sunsets in 2025, individuals and their advisors must prepare for potential shifts in tax policy. Join our panel of experts—a CPA, financial advisor, and estate planner—for a timely discussion on what to expect when the law expires.
Explore how these changes could impact financial planning and charitable giving and learn what steps professionals are recommending to their clients. Discover strategies you can use to mitigate the impact and make the most of your charitable contributions in this evolving landscape.
The panel will feature Josh Gimpelson of RBC Wealth Management, Ross Keogh of Parsons Behle & Latimer, and Russell Rice of Eide Bailly; and will be moderated by Julie Sirrs of Boone Karlberg.
Drinks and appetizers will be served, and all are welcome. Please register and let us know you are coming.
Panelists
Josh Gimpelson, RBC Wealth Management
After graduating from The George Washington University in Washington D.C., Josh and his wife moved to western Montana. Josh began his career with Oppenheimer and Company in 2002 as a junior partner on a financial advisor team specializing in managing assets and portfolios for executives and employees of small-cap energy and pharmaceutical companies across the country. After joining Smith Barney in 2005 and subsequently UBS Financial Services in 2008, Josh expanded his practice to include a team specializing in wealth and financial management.
Over the last eight years, Josh worked closely with technology executives, business owners and professionals on wealth planning, including stock option analysis, concentrated stock position strategies, tax-considerate investment practices and estate planning services.
Josh believes in making his clients’ lives easier and more fulfilling. Through his career, Josh learned that it’s the people you surround yourself with who truly elevate your life. This is what Josh aims to do in his financial services practice. While based in Missoula, Montana, he spends time working with clients throughout the west and spends a significant amount of time in the San Francisco Bay Area and Seattle.
Josh holds a Bachelor of Arts degree in business and information systems from George Washington University, where he was a four-year member and captain of the water polo team. Originally from St. Louis, Missouri, Josh and his wife, Megan, have two children and live in Missoula. Josh loves Montana and anything outdoors. He can often be found at local ski area Montana Snowbowl, skinning up a backcountry peak or trail running through Glacier National Park. He is involved with several nonprofits including the Missoula Art Museum, Missoula Food Bank and Five Valleys Land Trust.
Ross Keogh, Parsons Behle & Latimer
Ross Keogh is a shareholder in the firm’s rapidly growing Missoula, Montana office. His practice focuses on helping clients create and manage tax-efficient business structures and capital syndication, particularly in the context of start-ups, real estate and the Opportunity Zone incentive.
A member of Parsons’ energy, environment and natural resources practice group, Ross combines his extensive pre-law experience in developing large-scale renewable energy projects, a master’s degree in economics, his deep legal experience in business and real estate transactions and tax with his passion for Montana’s outdoor and rural lifestyle to deliver a unique skillset to clients.
As a leading expert on the 2017 Tax Act and the Opportunity Zones Tax Provision (section 1400Z-2), Ross provides advice to clients in tax planning and deal structuring around the creation, sale or purchase of businesses or real property. His experience as an economist and attorney enables him to directly and dynamically advise clients on the tax and business implications of transactions and to tax-efficiently structure their capital stack.
In the Intermountain West, Ross is an expert in the areas of water rights, energy and real estate law. He represents some of Montana’s largest companies before the Montana Water Court and supports developers across the Pacific Northwest with complex real estate transactions and equity placements.
Russell Rice, Eide Bailly
Russell works with a variety of clients in tax compliance for individuals, corporations and partnerships. He operates in many different industries and works extensively with multi-state companies. In addition to income tax return preparation, Russell enjoys tax consulting and planning projects aimed at identifying tax savings for his clients.
Outside of work, Russell enjoys spending time with his amazing wife and two wonderful kids. He is a big baseball fan and is always rooting for the St. Louis Cardinals.
Julie Sirrs, Boone Karlberg
Julie received her undergraduate degree from Georgetown University’s School of Foreign Service. Prior to becoming an attorney Julie was an intelligence officer with the Defense Intelligence Agency. Julie graduated with high honors from law school at The University of Montana and received a Master of Laws in Taxation from the University of Washington. While in law school, Julie was an intern with Boone Karlberg and also performed her clinical internship with United States District Court Judge Donald W. Molloy. After graduating from law school, she joined Boone Karlberg as an associate in 2008. Her practice areas are Elder Law, Probate and Trust Administration, Estate Planning, Business and Real Estate Transactions, and Tax and Civil Litigation. In addition to practicing law, Julie has taught courses in taxation and elder law at the University of Montana School of Law. She enjoys spending time with her husband Owen and their two children, taking advantage of the many recreational opportunities Montana offers.
Women's Giving Circle Showcases Grant Finalists
Women's Giving Circle Showcases Grant Finalists
The Women’s Giving Circle of Missoula County will hear from the three organizations selected to move forward in their 2024 grant cycle at their annual Finalist Presentations.
The presentation night will be held on Thursday, October 17 from 6-8PM at Goodworks Place, 129 West Alder Street and will focus on specific work being done by Montana Legal Services Association, The Poverello Center, and United Way of Missoula County to address homelessness and housing in our community.
Members of the WGC pool their membership gifts and provide an annual grant to a local nonprofit organization. This year the WGC has increased their annual grant award from $10,000 to $15,000 – and two unrestricted gifts of $1,000 will be given to the runner-up organizations.
The WGC has granted $64,000 to the Missoula Community since its inception in 2018. Each year the Circle collectively selects a grant focus area, facilitates education about the issue for its members and provides a forum for the grant finalists to showcase their work.
There is still time to join the Circle for the current grant cycle and vote for the award winner.
Lunch and Learning October 7th - Estate Planning
Estate Planning: Strategies for Getting it Right
Be the Change Education Series: Educational Events for Philanthropy & Community Giving
The Missoula Community Foundation will host a lunchtime learning event, Estate Planning: Strategies for Getting it Right, from 12:00 to 1:00 PM on October 7th in the Cooper Room at Missoula Public Library.
Estate Planning Attorney Martha Goodloe will help participants understand the essential components of a solid estate plan and the benefits of incorporating charitable giving. Martha Goodloe has been helping Missoulians build impactful estate plans for the past decade and is especially skilled in helping her clients balance family and community interests.
A light lunch will be provided at the event and doors will open at 11:45 so participants can gather their lunch before the presentation begins. The presentation will begin at noon and conclude by 1:00 — and we will be available for discussion and questions until 1:30.
This event is the fourth offering in the Missoula Community Foundation’s Be the Change Education Series. This series includes presentations, workshops and panel discussions that support and encourage philanthropy in Missoula and beyond. This series is free and open to the public.
Please register and let us know you are coming!
Note: If you attended our February event, Making a Plan: The Intersection Between Charitable Giving and Estate Planning, much of the material presented will be the same.
Women's Giving Circle Hosts Panel Discussion on Homelessness & Housing
Women's Giving Circle Hosts Panel Discussion on Homelessness & Housing
The Women’s Giving Circle of Missoula County (WGC) will host a panel discussion on homelessness and housing — Wednesday, August 21st at the Missoula Public Library’s Imaginarium from 5:30-7:00PM.
The WGC hosts an educational event each year to explore and better understand their grant focus. This year’s event will feature: Emily Armstrong, Houseless Programs Manager, City of Missoula; Anne Geiger, Strategic Initiatives Manager, City of Missoula; Colin Lane, MMW Architects & Member of the Affordable Housing Resident Oversight Committee; Jim Bachand, Executive Director, Missoula Organization of Realtors (MOR) and Brint Wahlberg, Board President, MOR. WGC Steering Committee Chair, Dawn Payne, will moderate the discussion.
The WGC will grant $17,000 this year to organizations addressing homelessness and housing in our community. One grant of $15,000 and two $1,000 gifts will be awarded. The grant application is now open and closes on August 30.
The WGC is a program of the Missoula Community Foundation and has granted $64,000 to local non-profits since its inception in 2018. The Circle includes nearly 100 women and non-binary philanthropists of all ages and backgrounds who pool their resources to contribute to positive change and amplify their impact.
The panel discussion is free and open to the public — participants are encouraged to RSVP here.