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donor advised funds are this kudzu thats eating up the world of charitable giving Im Alan Cantor Ive developed too peculiar expertise and donor-advised fund donor advised funds are these entities that live in a grey zone in between private foundations and regular what we think of as public charities and it provides them with a lot of tax advantages and a lot of flexibility youd have to go back to 1969 to understand how donor advised funds developed so Congress in the 1969 Tax Act said there are two kinds of charities theres public charities soup kitchen or a school or a hospital we trust them and they could do kind of what they want and there were private foundations and were gonna watch them like a hawk and like the Ford Foundation or the Rockefeller Foundation they developed a lot of rules specifically for private foundations a we have to know everything that happens it has to be full transparency be you have to give out at least 5% of your assets every year to actual public ch