Donor advised funds enable donors and their families to practice philanthropy on a regular basis.  The donor sets up a fund, managed by the Foundation.  Each year, the donor advises the Foundation where, when and how the funds should be distributed. 

Depending on the wishes of the donor, payouts may be made from interest only or from principal.  The fund is like a family trust that allows parents to teach their children about charitable giving.  It can continue for several generations, or be terminated on the death of the original donor.