Plan to give: give back in your own way.

• Author: Little, Candace M.
• Position: Executive Living

Are you a philanthropist? Do you have extra funds to donate? Are you interested in supporting a nonprofit or cause? Perhaps starting your own fund? As long as you want to give in some way, there are certainly plenty of ways to do it.

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And that--deciding where to give, when to give and how much to give--is one of the challenges of giving, says Fraser Nelson, executive director of the Community Foundation of Utah. The Community Foundation works as a large connection-maker for nonprofit organizations seeking donations from generous companies and individuals.

Companies are often approached by different organizations to donate, often in a manner that forces executives to make a quick decision about whether or not to give. Nelson suggests that executives take a more organized approach and have their answer decided before they are solicited.

She advises business owners who want to give strategically to make and follow a giving plan. This involves becoming familiar with what the community needs, aligning those needs with company or personal values, and putting a timeline to the donations.

One-Stop Shop

One plan Nelson suggests is the Donor Advised Fund(DAF). Setting up a DAF allows the Community Foundation to help donors decide where to give by researching the most sound nonprofit in the donor's particular area of interest, like distinguishing one animal welfare organization from another. Setting up a DAF also means that when a nonprofit is seeking donations, they can be directed to the Community Foundation, as manager of your fund.

The DAF requires first-time users to commit a $5,000 donation to get started. The donor is then asked to provide direction regarding where the $5,000 should be allocated. From there, the Community Foundation researches existing funds and nonprofits to determine which organizations should receive the gift, according to the donor's interests and values. The DAF is a one-stop shop, even cutting the check to the organization selected to receive the gift.

"The Community Foundation becomes that intermediary, and for some people that is a really big benefit," says Nelson. "Also just for people who know what they want to give to, we do all of the back office paper work--we're sort of payroll with a whole lot of expertise. There are also very clear tax advantages to setting up a DAF rather than a private foundation."

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But Nelson says the biggest benefit to starting a DAF or having any...