Most funds offer both high-risk and conservative investments, with varied returns. The Gift Preservation Pool of the Schwab Fund for Charitable Giving returned nearly 7 percent last year, while the Growth Index Pool was off by 9 percent. Regardless of the investment strategy, donor-advised gifts often provide charities with welcome windfalls. The anonymous donor, a high-tech magnate, issued the check from a fund at the Community Foundation Silicon Valley. Donors seeking guidance for their giving may prefer community foundations to the national financial firms.
Some nonprofits also offer funds of their own.
The Humane Society of the United States' new donor-advised fund shuns firms that conduct animal testing, and it requires donors to direct at least 10 percent of their gifts to the society. Most funds allow account contributions from multiple donors, so you can pool resources with family members. Or check whether your firm sponsors a gift-matching program. But the hefty minimums shouldn't deter you entirely from giving. Tips on how to value gifts to charities for tax deduction purposes, and what kinds of records to keep.