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The issue is that, maybe not in your case, but certainly in the cases of wealthier people, they're getting the tax break, but the money isn't actually going to
by s73v3r_ 8y ago
The issue is that, maybe not in your case, but certainly in the cases of wealthier people, they're getting the tax break, but the money isn't actually going to anything charitable. If the money isn't actually going to charity, then why are we, as a society, giving a tax break for it?
- yellowstuff 8y agoDAFs can invest the money or make grants to charities. All the money eventually goes to charity except for management fees, but any investment account pays management fees. That's why there's a tax break.
- s73v3r_ 8y agoDoes it? What's the thing that forces it to eventually go to charity, as opposed to laying around in limbo for ever?
- Erem 8y agoFrom what I understand, nothing forces it to ever go out. But if it does go out, it must go out to charity.
- toast0 8y agoAll the DAFs I researched had a policy that if their overall granting wasn't at 5% every 5 years, they would enforce that level on each DAF; I had recalled a larger grant requirement, but on further review I was mistaken, so I've edited my comment. Some of the other comments have mentioned funding a DAF with a DAF, though, which seems like it could workaround the distribution requirements, but also seems readily closeable.