Thanks, Mark! I agree the DAF can conveniently allow you to put off choosing how to distribute the gift, but then you've also removed much of the incentive for the giver to make their choice... and therefore potentially delayed the money reaching an actual charity (for some portion of DAF users).
I don't use one but have considered it. In the interest of fostering conversation, here are a couple of things I DON'T like about DAFs:
It (maybe) delays when charities actually receive funds. It seems to me that some people are eager to get the tax benefits, but if you wanted to help people who are suffering in the world, they could probably use the cash now. This may not apply to ever donor, but it seems to me that it applies to some of our nation's wealthiest folks.
The calculus (including as described here) assumes that minimizing taxes is its own virtue. However, we in the US are running an enormous and unsustainable $39T debt that is increasing faster than GDP. Maybe it's ok if some of our charitable giving is used to pay that down for future generations.
So the logic here is, we incentivized people to fund their retirement accounts too highly... and now we need to give them another round of tax incentives to take their money out again? Seems like maybe another round of tax breaks is not the right solution.
Comments
Thanks!
Post: Why I use a Donor-Advised Fund
Link to comment from February 21, 2026
Thanks, Mark! I agree the DAF can conveniently allow you to put off choosing how to distribute the gift, but then you've also removed much of the incentive for the giver to make their choice... and therefore potentially delayed the money reaching an actual charity (for some portion of DAF users).
Post: Why I use a Donor-Advised Fund
Link to comment from February 21, 2026
If you disagree, please let me know why! Looking for a productive conversation, and maybe I'm missing something...
Post: Why I use a Donor-Advised Fund
Link to comment from February 21, 2026
I don't use one but have considered it. In the interest of fostering conversation, here are a couple of things I DON'T like about DAFs:
Post: Why I use a Donor-Advised Fund
Link to comment from February 21, 2026
So the logic here is, we incentivized people to fund their retirement accounts too highly... and now we need to give them another round of tax incentives to take their money out again? Seems like maybe another round of tax breaks is not the right solution.
Post: IRA Flat Tax Proposal
Link to comment from February 18, 2026
They’re not everyone’s favorite financial product, but I would be reading up on reverse mortgages in this scenario.
Post: Would You Raid the Piggy Bank or Mortgage the House?
Link to comment from December 7, 2025