You are probably thinking of donor advised funds. A DAF lives in a broader 501c3 (typically setup by a financial institution) and you can put money in it for ta

You are probably thinking of donor advised funds. A DAF lives in a broader 501c3 (typically setup by a financial institution) and you can put money in it for tax purposes. The money sits (and grows) while you decide where/when it will ultimately go. Crucially, with a DAF, because you took the deduction when you gave to the DAF the outflow from the DAF must go to another 501c3. If money leaving a foundation must go to another 501c3 how does the 501c3 loop ever break? It breaks because foundations can (and do all the time) pay individuals, contractors, for-profit companies, etc. Imagine the United Way trying to build an office. How could they possibly do that if their funds could only go to other 501c3s?