What Are Donor Advised Funds And Why Do They Hurt Charitable Causes? | Defined

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What Are Donor Advised Funds And Why Do They Hurt Charitable Causes? | Defined | Forbes

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4 жыл бұрын

Donor-advised funds are a way for donors to have more control over the funds they want to donate to charity. But according to Alan Cantor, a non-profit consultant, a lack of transparency and regulation of these funds has led to their abuse by individuals who want to park their untaxed wealth in funds or by people looking to secretly fund controversial causes.
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Пікірлер: 30

@travis1240 2 жыл бұрын

So misleading... It's unfortunate. It's not like someone can transfer money from a DAF back to themselves. It's going to charity, just potentially in a more tax efficient way.

@donmountford797 2 жыл бұрын

This is very misleading. If you put $ into a Donor Advised Fund, it is irrevocable. You are not hiding wealth. It is no longer yours. There could be some regulation around minimum distributions but really money is disbursed quicker from DAF than foundations. Personally, since markets tend to grow, planned giving through a DAF will lead to more being given away to a Charity on the long run. The question would be which is more beneficial 1 lump sum gift or regular annual gift that will likely be worth 2or 3 times the lump sum?

@bradpiper283 2 жыл бұрын

The transfer into the DAF is irrevocable. What happens to funds that sit in the DAF after you pass away? You cannot will a DAF. Wouldn't you need to have to have an eligible non-profit beneficiary? Otherwise wouldn't the DAF assets go to escheatment? If so - it would defeat the long-term purpose of the DAF as a tax sheltering strategy. Once in a DAF, the money is either going to a charity or back to the government, even if it takes a long time...I don't see how someone could say that DAFs "hurt charitable causes."

@muffinlordghoti1 2 жыл бұрын

Yeah people watch this smiley weirdo talk "authoritatively" on DAF's being the root of all evil and never read the Investopedia entry, IRS guidance, any other literature that would tell them that the donations are irrevocable, so the only advantage for the rich is a $0.35 tax savings for each WHOLE dollar they irrevocably commit to charity. He then has the gall to act like certain non-profits like boys and girls club are orthodox because he says so and are therefore OKAY, while all others are shadowy cabals (which incidentally have tax exempt status already).

@ParisianThinker 2 ай бұрын

DAF's do not hurt charitable causes.

@jonwiersig5800 4 жыл бұрын

I think your analysis is WRONG. With the huge federal standard deduction for tax purposes ($24,400 in 2019 for married filing jointly), donor advised funds are the best way form most of us who are not super rich to be able to deduct our charitable giving. I stack my deductions into one year, including a large donation to a donor advised fund, and then dole out my giving over the next few years. I am now much more charitable, supporting more causes with larger donations, with a donor advised fund than I would otherwise if I could not deduct the contributions. Donor advised funds even are more tax efficient than just donating cash, as you pointed out in the video. DONOR ADVISED FUNDS ARE GREAT FOR PEOPLE WHO WANT TO DONATE TO APPROVED CHARITIES IN A TAX EFFICIENT MANNER.

@Oxyminoan 4 жыл бұрын

That's great that you're able to be even more generous because of the benefits of DAFs - that was why they were developed. He's not talking about doing away with DAFs he's talking about the need for regulations to ensure that they aren't being exploited and are used for their purpose, which is charitable giving, not tax evasion and wealth hoarding.

@Gelato22 3 жыл бұрын

When u say donate to approved charities do u mean charities you can create yourself so you basically get your money bck?

@jonwiersig5800 3 жыл бұрын

@@Gelato22 Absolutely not. I am donating to charities that have been vetted and approved by the donor advised fund (DAF), Fidelity Charitable in my case. Even some 501(c)(3) approved charities do not pass the DAF vetting process. It is possible to have a charity added to the DAF's approved list, as I have had done with my church and a Kenyan missionary that I support. All of my DAF approved charitable organizations are approved and legitimate charities.

@xyzzy4567 Жыл бұрын

@@jonwiersig5800it’s amazing how angry people get about other people donating money to good causes. It’s sad really. The structure is quite simple. I donate $100 to a DAF, and claim, say $30 on my taxes. Then I subsequently donate the $100 from the DAF to an approved 501(c)(3). On net, I’m “down” by $70-tax write offs do not net you money. However, they do effectively boost your donation by whatever your marginal tax rate is.

@dennisgerberjr 4 жыл бұрын

He forgets to mention the 21% grant rate from DAF's vs the 6% grant rate from private foundations. Oh by the way, private foundations report operational expenses within their grant rate, so the grant rate to the actual charities he is speaking about is closer to 3.5%. That is criminal!

@manup9575 3 жыл бұрын

This person has a propaganda agenda!

@reverbautopsy9093 6 ай бұрын

Ofcourse, he's jewish.@@manup9575

@Zaphod23 3 жыл бұрын

oh jeez, flexibility is bad lol

@ParisianThinker 2 ай бұрын

Why are you knocking DAF's? 99% of everyone that uses them give to charities all the time. Have you nothing else to do?

@ava4088 4 жыл бұрын

Find an interesting quote from Judge Richard Posner back in 2006 where he criticised "perpetual charitable foundations" , but I think applied to DAF too. Quote:" xxxx.... is a completely irresponsible institution, answerable to nobody. It competes neither in capital markets nor in product markets... and, unlike a hereditary monarch whom such a foundation otherwise resembles, it is subject to no political controls either... The puzzle for economics is why these foundations are not total scandals. "

@ava4088 4 жыл бұрын

On one hand, it is a true gift to be "irresponsible".. but should not be so tax-advantaged at least, otherwise more transparency and democratic oversight. because essentially it is a loss of public money which should not be used in such a plutocratically discreet manner

@ezcircuits4458 3 жыл бұрын

Honestly so incredible this video has less than 5k views

@user-lg1fq4ml3y 2 жыл бұрын

Character In the video It's great, I like it a lot $$

@bobbeckel5266 6 ай бұрын

There seems to be a presumption that only the rich can afford to be charitable. This guy is obviously not a Christian.

@BrooklynBaby100 3 жыл бұрын

I always wondered where all the “charity” money really goes. There are these people in need, and yet nobody ever sees this money. Scams

@TulsaSooner1979 3 ай бұрын

What?! Are you expecting cash payments to the poor? Seriously? People in need tend to receive the physical benefits of food, clothing, healthcare, shelter, etc. Giving cash payments to them for them to then spend on themselves - whether in the area of need or frivolity - is significantly more inefficient and ineffective.