Three reasons to use a donor-advised fund (Justyn Volesko)
As tax advisors, we want to talk to our clients about best ways to give to charity most tax efficiently.
We like to educate clients on what options are available to them. And most of the time, there are lots of tax efficient and other niceties to being able to set up a donor advice fund.
There are a variety of reasons for using Schwab Charitable. We have some clients who maybe this is the last year that they're getting significant income, and, could frontload donations in that year for tax purposes.
Another instance, if a client has significantly appreciated securities, I, tell those clients, "Let's fund a donor advised fund with appreciated securities instead of cash out of their bank accounts. If you want to make a $500 contribution to your local organization instead of having to send, a few shares of a particular stock, you fund a donor advised fund and now you can very easily make some of these smaller donations to these charities.
Sometimes clients will come to us and, and ask us if they should set up a foundation . Most of the time, a donor advised fund can accomplish much of what a client is looking to accomplish with a foundation, but at a much lower cost, much lower complication.
A donor advised fund for one of those three reasons almost always makes sense.
The ease of, of working with Schwab Charitable is probably the number one thing that I've enjoyed most. Without Schwab Charitable we wouldn't be able to provide the value that we provide to our clients with regards to charitable giving. Schwab Charitable has been great in terms of providing the knowledge and expertise to support the advice and guidance that we give to our clients.