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Donor Advised Funds

1,337 Views | 3 Replies | Last: 4 yr ago by investorAg83
Ag13
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AG
Considering opening one to maximize impact of charitable giving. Looking for a discussion around a few specific things:

- If I go to a banquet for a charity and want to buy something at an auction, could the DAF be used for that? Would it just be up to the charity on whether they'd want to wait to have X amount of funds transferred?

- To accomplish the same as above, and for other situations (like church giving), is it possible to get a checkbook from your DAF?

- How do the funds work with something like the 12th Man Foundation and buying season tickets? I assume you can only use the funds for the donation portion of it?

- Can you donate appreciated stock INTO the DAF?

- In your experience do charities mind these that much? Seems like it might be a bit of hoops to jump through if you are just making a small donation.

- Any preference on providers? Seems like Fidelity and Schwab are the most common.
Casey TableTennis
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AG
Ag13 said:

Considering opening one to maximize impact of charitable giving. Looking for a discussion around a few specific things:

- If I go to a banquet for a charity and want to buy something at an auction, could the DAF be used for that? Would it just be up to the charity on whether they'd want to wait to have X amount of funds transferred?
NO

- To accomplish the same as above, and for other situations (like church giving), is it possible to get a checkbook from your DAF?
I'VE NEVER HEARD OF THIS BEING AN OPTION WITH ONE.

- How do the funds work with something like the 12th Man Foundation and buying season tickets? I assume you can only use the funds for the donation portion of it?
IF YOU ARE GETTING A BENEFIT, CANT USE THESE.

- Can you donate appreciated stock INTO the DAF?
YES, BUT ALMOST CERTAINLY WILL BE REALLOCATED.

- In your experience do charities mind these that much? Seems like it might be a bit of hoops to jump through if you are just making a small donation.
THEY DONT CARE AT ALL. I DONT LIKE USING THEM FOR LESS THAN $1K, UNLESS RECURRING.

- Any preference on providers? Seems like Fidelity and Schwab are the most common.

THEY ARE ALL SIMILAR, BUT YOUVDO WANT A SUFFICIENTLY LARGE ONE SO THE 5% DISTRIBUTION RULE WONT APPLY TO AN LY OARTICULAR GRANTOR.
ATXAdvisor
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AG
I use Fidelity's. I can make grant recommendations for as little as $50 online. The ability to make contributions of appreciated securities independently of when I give to a particular charity is the main benefit, but the convenience comes at an annual cost of .5% at Fido, IIRC. They park the money in their mutual funds although I get to determine how aggressive the allocation is.
P.H. Dexippus
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AG
Fidelity has an estimated fees tool on their website. This is pricier than I had assumed it would be.
investorAg83
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AG
Mr. AGSPRT04 said:

Fidelity has an estimated fees tool on their website. This is pricier than I had assumed it would be.

Fees are always going to be relative per investor but Fidelity's 60 bps on the first 500k is not a lot considering the main use is dumping massively appreciated assets in the account and avoiding taxes on the gains.

The 54 bps for the investment expense is a bit high for a general portfolio and the growth number also seems incredibly conservative (for even a conservative portfolio), but to each their own.
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