6 ms·

I think this is a neat idea but I wish they would explain this in a simple sentence on their site instead of all the mumbojumbo. Something like This is a Dono

I think this is a neat idea but I wish they would explain this in a simple sentence on their site instead of all the mumbojumbo. Something like This is a Donor-Advised Fund that is completely free to participate in. Donor-Advised Funds are the best way to give when you have a major liquidity event because: Reason 1 Reason 2 Reason 3 Join a community of people who want to do the same. This is useful for you because: Reason 1 Reason 2 Reason 3

mkagenius 10y ago
> Donor-Advised Fund This sounds more like mumbojumbo to me
- nxzero 10y ago
  It's a common term in this context, but would agree it's not completely Plain English either: https://en.m.wikipedia.org/wiki/Donor-advised_fund https://en.m.wikipedia.org/wiki/Donor-advised_fund
- loeg 10y ago
  It's a common way to claim tax benefit now, but control (to some extent) giving in the future. E.g., * https://www.vanguardcharitable.org/ https://www.vanguardcharitable.org/ * https://www.fidelitycharitable.org/ https://www.fidelitycharitable.org/
  - ernestipark 10y ago
    These are great avenues for any employee that receives equity to 1. maximize their tax savings, 2. give to charities they care about (in the US). Any stock that's held for over a year that qualifies for long term capital gains can be transferred to a DAF like with Vanguard or Fidelity and you won't be taxed on it at all. Especially if you have a set budget for giving to charities this is a great way to maximize your dollar and extend your budget.
bradleyjg 10y ago
Yeah it wasn't clear from reading this article whether or not doing this up front has tax or other benefits that allow the ultimate donated amount to be larger, or it is just a precommitment device.
- loeg 10y ago
  It allows you to significantly mitigate tax in high-income years (e.g., an exit) while providing a steady flow of money to charity even in lower income years.
  - bradleyjg 10y ago
    Does the timing of the pledge have benefits or only the ultimate donation?
    - loeg 10y ago
      The tax deduction happens when the money (or stock/equity) leaves your (direct) control and is deposited in the DAF. Later suggested donations from the DAF to charities are not tax-deductible.
hkmurakami 10y ago
Dovor Advised Funds recently came under fire for having an overall poor track record of fund disbursement. I wonder what mechanisms (if any) will be in place to make sure disbursements are made in a timely manner. Otherwise this runs the risk of being branded as a "tax avoidance maneuver by ever greedy SV billionaires".

mkagenius 10y ago

> Donor-Advised Fund This sounds more like mumbojumbo to me

nxzero 10y ago
It's a common term in this context, but would agree it's not completely Plain English either: https://en.m.wikipedia.org/wiki/Donor-advised_fund https://en.m.wikipedia.org/wiki/Donor-advised_fund
loeg 10y ago
It's a common way to claim tax benefit now, but control (to some extent) giving in the future. E.g., * https://www.vanguardcharitable.org/ https://www.vanguardcharitable.org/ * https://www.fidelitycharitable.org/ https://www.fidelitycharitable.org/
- ernestipark 10y ago
  These are great avenues for any employee that receives equity to 1. maximize their tax savings, 2. give to charities they care about (in the US). Any stock that's held for over a year that qualifies for long term capital gains can be transferred to a DAF like with Vanguard or Fidelity and you won't be taxed on it at all. Especially if you have a set budget for giving to charities this is a great way to maximize your dollar and extend your budget.

bradleyjg 10y ago

Yeah it wasn't clear from reading this article whether or not doing this up front has tax or other benefits that allow the ultimate donated amount to be larger, or it is just a precommitment device.

loeg 10y ago
It allows you to significantly mitigate tax in high-income years (e.g., an exit) while providing a steady flow of money to charity even in lower income years.
- bradleyjg 10y ago
  Does the timing of the pledge have benefits or only the ultimate donation?
  - loeg 10y ago
    The tax deduction happens when the money (or stock/equity) leaves your (direct) control and is deposited in the DAF. Later suggested donations from the DAF to charities are not tax-deductible.

hkmurakami 10y ago

Dovor Advised Funds recently came under fire for having an overall poor track record of fund disbursement. I wonder what mechanisms (if any) will be in place to make sure disbursements are made in a timely manner. Otherwise this runs the risk of being branded as a "tax avoidance maneuver by ever greedy SV billionaires".