According to Mark Cheng and Laura Kromminga of Ashoka, one of EO’s partners, a new type of fund allows entrepreneurs to start their own foundations without the hassle of set-up costs and extensive administrative tasks. A Donor Advised Fund (DAF) is a new philanthropic tool that’s ground-breaking because “before granting out the money, a DAF, with donors’ permission, can use the funds for impact investing.” Read more about DAFs in this recent article published on Ashoka’s Forbes column:
Wish You Could Be a Philanthropist AND Impact Investor? A New Fund Lets You Do Both
What if you could start your own foundation – but with no administrative hassles or set-up costs? Even better, what if you could use your foundation to make loans to nonprofits and social enterprises so that your capital could be repeatedly recycled to create impact again and again and again? A new kind of fund combining philanthropy and investment allows you to do exactly that – it’s called the Donor Advised Fund (DAF).