Grant Making

Donor-advised funds (DAFs) and private foundations differ in their grant-making restrictions. For example, donor-advised funds can only support a 501(c)(3) public charity. A grant from a DAF cannot be made to or for the benefit of a specific individual, such as for tuition or other required fees. This includes scholarships unless the grant is made through a scholarship committee appointed by the sponsoring charity that the donor does not control. The more comprehensive donation ability of private foundations can allow people to make the exact impact they would like.

https://www.foley.com/en/insights/publications/2020/11/grants-to-individuals-an-underused-technique