Donor-Advised Funds

A donor-advised fund is a tax– and cost–efficient alternative to a private foundation for managing donation of appreciated securities to nonprofit organizations. You fund an account with appreciated securities and then advise the fund how you would like the proceeds to be disbursed—the fund doesn't technically have to follow your wishes, but most DFAs will simply disburse to any 501(c)3 organization that you specify.

Why Use a DFA?

1. commit funds to philanthropy when it's optimal for tax purposes, in advance of committing to a particular gift to a particular organization;

2. continue to invest and grow funds committed to philanthropy after taking the tax break;

3. easily donate securities to any nonprofit, whether or not they're set up to receive them;

4. fees are generally low—0.6% for the first $500k (+ ER for the investments).

Why Not Use a DFA?

1. You are donating from a pool of cash instead of appreciated securities;

2. You are donating relatively small amounts (<$20k);

3. You are taking advantage of an employer donation matching program.

Providers

• https://www.vanguardcharitable.org/

References

• https://en.wikipedia.org/wiki/Donor-advised_fund

• https://jlcollinsnh.com/2012/02/08/how-to-give-like-a-billionaire/

• http://forum.mrmoneymustache.com/investor-alley/donor-advised-funds-for-charitable-giving/

• https://bcwiki.brandoncurtis.com/p/philanthropy

• https://wiki.andhigherstill.com/w/Philanthropy

• https://docs.google.com/document/d/1q5Y2K6aTVGwHSkKeyK57lk6VZKTl-csQysSRkn5-2uI/