Lisa, I think you should join the drain the DAF movement. I think you correctly identified that DAF money managing firms have an incentive to hold onto the money- no matter what donors do.
At the same time, I do think that having DAF's is a great vehicle for people who suddenly come into wealth, as the tax rates favor a one time contribution in the same year that an individual receives a windfall.
My proposal over the years has been that any funds donated to a DAF needs to be disbursed in 5 years. This is plenty of time for donors to make decisions and plenty of time for DAF financial advisors to make there 75 to 125 basis points on the money they 'manage'.
Lisa, I think you should join the drain the DAF movement. I think you correctly identified that DAF money managing firms have an incentive to hold onto the money- no matter what donors do.
At the same time, I do think that having DAF's is a great vehicle for people who suddenly come into wealth, as the tax rates favor a one time contribution in the same year that an individual receives a windfall.
My proposal over the years has been that any funds donated to a DAF needs to be disbursed in 5 years. This is plenty of time for donors to make decisions and plenty of time for DAF financial advisors to make there 75 to 125 basis points on the money they 'manage'.
-Jon
Jon Biedermann
Chair, Fundraising Effectiveness Project