Multi-generational family philanthropy made simple.
Compass For Families brings your family's philanthropic vision to life with advanced tools, dedicated family support, and collaborative features designed for impactful multi-generational giving.
Family philanthropy shouldn't be complicated.
Coordinating family giving across generations, managing multiple priorities, and ensuring meaningful impact can be overwhelming. Traditional family foundation models come with heavy overhead and complex administration.
Unite your family around shared values and measurable impact.
Compass For Families provides the structure and tools to align your family's philanthropic goals, engage the next generation, and create lasting impact together.
Collaborative Giving Plans
Create shared family values frameworks and giving strategies that reflect multiple generations' perspectives and priorities.
Next-Generation Engagement
Engage younger family members with intuitive tools, educational resources, and hands-on giving opportunities that build lifelong philanthropic habits.
Dedicated Family Support
Work with dedicated family support who understands your family's unique dynamics and helps facilitate meaningful giving conversations.
Everything you need for family philanthropy, none of the overhead.
Most families want to set up a philanthropy practice that leaves a legacy and:
Reflects their values
Supports long term giving strategies
Empowers multi-generational giving
You don't always need to create a private foundation to achieve this. Let's break down the strengths and shortcomings of each option.
DAF vs. Private Foundation
| Feature | Donor-Advised Fund (DAF) | Private Foundation (PF) |
|---|---|---|
| Setup & Administration | Simple setup, minimal administrative burden. No need for separate legal entity or board. Compliance is handled by the DAF sponsor (eg. Daffodil Charitable). | Complex setup requiring legal entity, board structure, IRS filings, and ongoing compliance. |
| Cost | Lower costs - no separate tax filings, legal fees, or administrative overhead. | Higher costs - requires annual tax returns (990-PF), legal counsel, and administrative review. |
| Excise Tax | No excise tax on investment income. | 1.39% excise tax on net investment income. |
| Minimum Distribution | No required annual payout - give on your own timeline. | Annual 5% distribution requirement. |
| Grantmaking Flexibility | Can give to U.S.-based 501(c)(3) public charities & fiscally sponsored organizations. | Can give to U.S.-based 501(c)(3) public charities, individuals for hardships, create scholarship programs, support international organizations directly, and make loans to charities. |
| Family Philanthropy | Empowers multi-generational giving with successor advisors. Reflects values and supports long-term strategy without complexity. | Family control managed through board appointments and the fiduciary obligations that come with it. |
| Control & Privacy | Donor advises on grants. Grants can be made anonymously. No public disclosure requirements. | Board has full control over all decisions. All grants and financials are publicly disclosed via 990-PF. |
| Interoperability | Cannot shift assets to a private foundation or remove philanthropic restrictions. DAFs can receive grants from private foundations. | Can make grants to DAFs to satisfy 5% MDR. Future generations can shift PF assets to DAFs if desired, usually when family values shift over time. |
| Best For | Families seeking simple, tax-efficient philanthropy with low administrative burden. Ideal for foundations funded with $5M or less. | Families needing maximum control, complex asset types, direct international giving, or individual/scholarship grantmaking. |
Worth noting: 67% of private foundations have $1M or less. At this level, most families get better results with a DAF.
Ready to bring your family together around giving?
Schedule a personalized demo to see how Compass For Families can help your family create lasting philanthropic impact across generations.