Greetings all,

We at Bona Fide have been able to enjoy a bit of down time and now we are ready to stay busy for the rest of the year helping our clients succeed in all aspects of their lives. This newsletter will provide you with some context surrounding current interest rates. But first, a word from our sponsor…

If you haven’t yet, take a listen to our podcast, The FI Entrepreneur.  Here,  we will be spending some time digging into the how-tos of entrepreneurship and financial independence. We also are planning to interview a number of guests, so if you or someone you know is active in entrepreneurial or financial independence pursuits, please reach out and let us know!

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November 1, 2022

Your Giving Vehicle

Donor-advised Funds vs. Private Foundations

Read

Giving feels good, right? And so does establishing the right giving vehicle to help you maximize your tax advantages. We want to share this article fromCharityvest about two common options that both offer strong tax benefits. Here, you’ll find a thorough overview and comparison of DAFs (donor-advised funds) and private foundations. There are many advantages to both, but each has different characteristics which should be considered when choosing the best option for your charitable giving. Something else worth considering is how to organize a charitable giving inclination with a plan. How much, and how to determine this figure is discussed in Flow- Financial Planning “How Much Money Should You Give to Charity?” Donating a percentage of  income, donating a percentage of wealth, or donating the equivalent of a budgeted category are a few ways to dive into it. Many also choose to make their contribution repetitive and consistent. However you decide to go about it, giving makes the world a better place. 

Listen

In this short listen by US In-Air, it is explained why someone would establish a giving vehicle in the first place and how to organize this giving to sustain it for the future. With a DAF, the gift can be anonymous, but on the other hand there is more administrative work involved in a private foundation. You can see how these options vary, but are flexible in ways. Additionally, for a unique look on how to give, you may want to listen to The Value in Giving’s Podcast episode titled Maximizing Charitable Impact: Creative Giving Vehicles.

Watch 

Professor Russell James at Texas Tech University reviews the foundations of DAFs and PFs in this video with specifics on relative size, rapid growth, permanence, tax treatment, wealth name values, and more. If you’re looking for even more insight, Brad Rosley talks about Why Use a Donor Advised Fund, focusing on bunching deductions and avoiding capital gains as two key benefits. He shares his personal approach to DAFs and offers suggestions. Another great watch comes from James Conole at Root Financial Partners. His discussion on how to maximize the effectiveness of your gift while also taking advantage of the deductions you’re able to take from them focuses on preparing for a better financial future.