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> As for the DAF, he can never retrieve that money, nor spend it on anything that's not for the public benefit. That's that flaw. The money can be allocated t
by kareemm 8y ago
> As for the DAF, he can never retrieve that money, nor spend it on anything that's not for the public benefit.
That's that flaw. The money can be allocated to a charity that the donor controls. Or invested in a private e.g. hedge fund... also potentially controlled by the donor.
- URSpider94 8y agoNo, you can’t do either of those things. Either one would be self-dealing, and would constitute tax fraud.
- kareemm 8y agoI'm not sure it's self-dealing. Self dealing constitutes a breach of the fiduciary relationship they have on behalf of another party[1]. If they're the donor, direct the DAFs funds, and are the principal in the hedge fund or charity, there's no fiduciary relationship on behalf of another party. It may be fraud, but I'm not sure that's true either. In the hedge fund scenario I'm not how it'd be fraudulent. The money has to go back to the DAF at some point - the hedge fund is an investment vehicle. In the charity scenario how is it fraudulent? I don't see it but could be missing something. 1- https://en.wikipedia.org/wiki/Self-dealing https://en.wikipedia.org/wiki/Self-dealing