Charitable Constraints

Donor-advised funds (DAFs) have become increasingly popular vehicles for charitable giving in the US, including for donors in the private fund management community. For many such donors, a stake in a fund or its GP or management company (if separate) may be the most logical asset available to fund long-term philanthropic goals. However, certain tax issues, including the rules on excess business holdings, must be considered prior to contribution, particularly if one is donating an interest in a GP or management company.

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