Invest Better & Give Smarter Through Donor Advised Funds
Year End Giving with a Twist
Donor advised or donor managed funds are just one little secret used by millionaires to help them save tax, while delivering impact.
Entrepreneurs and business owners all face the same challenge as the year end approaches. How do we maximize our accounting to pay as little tax as possible.
Legally!
Although going out to buy that new car sounds nice, another option that’s not so well known is an investment vehicle or ETF called a ‘Donor Managed or Donor Advised Fund’.
It sounds complex but it’s super simple. It’s a giving account that is created at a public charity that allows you and me, the donors to make charitable contributions today, so we can enjoy the immediate tax deductions that go with that, while protecting the capital so it can be deployed at a later time as advised by the original donor (you and me again).
In other words, if you know you want to do more and give more, but you’re not quite sure where or how just yet, then moving capital into a Donor Advised Fund gives you all the benefits of that gift now, while investing the money so you can give it away at a later date.
There’s a few restrictions and details you need to understand so speak to your financial advisor to learn more, but this could be a great way for some to achieve their goals without feeling the time-pressure of year end, and making a hurried, bad decision as a result.
Giving wisely make much more sense than giving hurriedly.
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