Across the country, an estimated $326 billion sits in Donor-Advised Funds (DAFs)—capital already set aside for philanthropy that remains undeployed. Ahead of DAFDayCLT on October 8th, we asked long-time Go Jen Go supporter Mike Smiley, Financial Advisor at Coastal Bridge Advisors for his perspective on why establishing and utilizing a DAF is one of the smartest philanthropic moves you can make:
“Back in 2007, I began using Donor-Advised Funds for my family and clients. It was one of the best financial decisions I ever made. Opening one is easy. Custodians like Schwab, Fidelity, and Vanguard all sponsor DAFs with a minimum contribution of $5,000 or less. Community Foundations also provide these vehicles.
Most of my clients contribute appreciated investments to secure a tax deduction while avoiding capital gains taxes on the sale. Donors can also choose how much information to share with the charity, including remaining entirely anonymous to protect their privacy.
While deductions are immediate upon funding, grant timing is flexible. In the interim, funds can be invested in stocks, bonds, or short-term instruments to grow your philanthropic impact—though, like any investment, market risk applies.
Because there are important nuances to consider, I recommend consulting your financial advisor, CPA, or attorney to evaluate if a DAF fits your specific charitable goals.”
How to Take Action for DAFdayCLT:
Dedicate DAF dollars into immediate relief for local breast cancer patients, survivors and thrivers:
1. **Log In:** Access your DAF sponsor portal (Fidelity Charitable, Vanguard Charitable, Foundation For The Carolinas, etc.).
2. **Select Go Jen Go:** Recommend a grant directly to support local families facing critical financial needs during breast cancer treatment.
3. **Spread the Word:** Remind fellow DAF holders in your network to activate their funds this week!
*Disclaimer: Tax rules and investment options vary based on individual circumstances. Consult your financial or tax advisor before establishing or funding a DAF.*
