How are donor advised funds invested?
Donor advised funds grow tax-free and are not subject to mandatory annual distribution requirements like private foundations.
Funds can be invested in one of five non-endowed (fully spendable) strategies that are comprised of American Funds mutual funds: Money Market, Conservative, Balanced, Growth or All-Equity.
Donor-advised funds can also be endowed (limited to an annual spending policy and designed to be permanent) and invested as part of the Community Foundation’s endowment pool.