Registered Rep Magazine provides the down low on donor advised funds. Money goes in easy and comes out slow.
Where DAFs really shine in comparison to just forking over funds to a particular charity is the flexibility inherent in the questions related to “when” and “how much” must be siphoned off the fund to a qualified organization.
Unlike private foundations, there is no IRS requirement that a minimum amount of money be distributed from an individual donor-advised fund in a particular time period.
So your client can make a tax-deductible donation this year of say, $100,000 to a DAF. But she might only choose to only peel off a few thousand of that amount to a favorite charity now, and leave the rest to multiply for future benevolent endeavors.
Of course you still have to get paid on the assets under management. But how when Community Foundations don't compensate you? Well, read the last section, "Getting Your True Reward," to find out. Clearly, in the minds of the rep, Community Foundations are asset managing competitors, unless some way to pay the rep has been found.