Author Topic: Let's talk about DAFs  (Read 4775 times)

seattlecyclone

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Re: Let's talk about DAFs
« Reply #50 on: December 21, 2017, 05:30:48 PM »
I opened a DAF at vanguard last night, took about twenty minutes.

This morning I funded it, which took more like 30 minutes because I had to identify which specific lots I was donating, because I use the specID cost basis method.


Did you have to talk to any humans to do any part of this?

I did speak to a human, but did not have to.  But only because of the specID thing.  You can submit the written list of specific lots by email to vanguard charitable directly, or by phone if you call vanguard (not vanguard charitable) directly.

I thought it would be easier to call it in than to prepare a written list, but I called vanguard charitable instead of vanguard.  They told me to just submit the list by email.

If you're not using specID they'll just donate your oldest shares in the specified account, which is probably pretty close to optimal.  I actually sorted by purchase share price and donated the most appreciated shares I had in there, rather than just donating the oldest ones.  It was only a slightly different list, since the account hasn't been around long enough to see any serious declines.  The past eight years have been amazing!

Thanks for the info. I should probably go ahead and do that. I figured I wouldn't save much compared to just donating via credit card because I reset the cost basis for most of my taxable account just last February when the market dipped for a bit, but it turns out my S&P 500 fund shares have gone up 40% since then. The market sure can perform well when you're not paying much attention!
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chasesfish

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Re: Let's talk about DAFs
« Reply #51 on: December 21, 2017, 06:07:59 PM »
Just pulled the trigger on a 25k rollover from our taxable accounts to vangaurd charitable.  i wanted to do fidelity but we are too late for that since the money was in vanguard funds. 

I did talk to a fidelity rep and you can do DAF to DAF transfers - so i can get to the lower minimum contribution levels by just moving the money from one DAF to another. 

Its a bit of a sting to just drop 25k from what was retirement contributions but in the long run this will benefit us much more.

Thanks for the tip about DAF to DAF transfers. We started a Fidelity DAF last year but opened one at Vanguard this year. Nice to know we could potentially consolidate.

That part works really easy.  I also checked into that with our local community foundation and they allow to/from transfers of donor advised funds.  I volunteer with them, but can't stomach their cost and investment performance.
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gatortator

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Re: Let's talk about DAFs
« Reply #52 on: December 22, 2017, 10:25:22 AM »
ptf

boarder42

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Re: Let's talk about DAFs
« Reply #53 on: December 22, 2017, 10:40:49 AM »
ptf

Won't be much to follow in 9 days. Start making your moves asap to get tax deduction for this year.

Dicey

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Re: Let's talk about DAFs
« Reply #54 on: December 26, 2017, 12:54:32 AM »
P2F. I've opened a DAF with Fido, but haven't funded it. Still wrangling over the amount to contribute for 2017 with DH. Fido says my check can be postmarked Dec. 31st, so yeah, I'm still working on this.
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katsiki

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Re: Let's talk about DAFs
« Reply #55 on: December 26, 2017, 06:59:17 PM »
Wow!  It took less than 2 minutes to open the DAF with Fidelity.  Amazing world...
"There are two ways to get enough. One is to continue to accumulate more and more. The other is to desire less." - G.K. Chesterton

chasesfish

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Re: Let's talk about DAFs
« Reply #56 on: December 26, 2017, 07:09:40 PM »
Wow!  It took less than 2 minutes to open the DAF with Fidelity.  Amazing world...

Congrats!  Welcome to the family!
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Daisy

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Re: Let's talk about DAFs
« Reply #57 on: December 26, 2017, 07:19:02 PM »
Wow!  It took less than 2 minutes to open the DAF with Fidelity.  Amazing world...

Yep! That's exactly what I said on this same thread back on November 3rd!

katsiki

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Re: Let's talk about DAFs
« Reply #58 on: December 26, 2017, 07:21:30 PM »
Wow!  It took less than 2 minutes to open the DAF with Fidelity.  Amazing world...

Yep! That's exactly what I said on this same thread back on November 3rd!

Funny you mentioned this...  I was reading back through the thread again and saw your comments!
"There are two ways to get enough. One is to continue to accumulate more and more. The other is to desire less." - G.K. Chesterton

Nathaniel

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Re: Let's talk about DAFs
« Reply #59 on: December 26, 2017, 07:38:41 PM »
Opened my Vanguard DAF today. It was quick and painless.

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Daisy

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Re: Let's talk about DAFs
« Reply #60 on: December 26, 2017, 07:56:46 PM »
Opened my Vanguard DAF today. It was quick and painless.

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Did you beat our two-minute record?

Nathaniel

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Re: Let's talk about DAFs
« Reply #61 on: December 26, 2017, 08:02:57 PM »
Opened my Vanguard DAF today. It was quick and painless.

Sent from my Nexus 6P using Tapatalk

Did you beat our two-minute record?
Sadly, no. There was some hesitation on my part. I'm not used to parting with >$25k so easily.

chasesfish

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Re: Let's talk about DAFs
« Reply #62 on: December 26, 2017, 08:05:01 PM »
Opened my Vanguard DAF today. It was quick and painless.

Sent from my Nexus 6P using Tapatalk

Did you beat our two-minute record?
Sadly, no. There was some hesitation on my part. I'm not used to parting with >$25k so easily.

"Some"  Hahaha!   It took us months to part with the initial $5,000 for Fidelity.  My wife is tighter than I am which made it a struggle.  Happy we did it though
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Daisy

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Re: Let's talk about DAFs
« Reply #63 on: December 26, 2017, 08:22:04 PM »
The struggle wasn't as real for me. I know eventually I will give this money away as charity. I am very excited to reduce my taxes by about $8,000 this year, which is my last fully employed year.

boarder42

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Re: Let's talk about DAFs
« Reply #64 on: December 27, 2017, 06:34:36 AM »
The struggle wasn't as real for me. I know eventually I will give this money away as charity. I am very excited to reduce my taxes by about $8,000 this year, which is my last fully employed year.

Same here. Very simple decision.

Dicey

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Re: Let's talk about DAFs
« Reply #65 on: December 27, 2017, 07:46:45 AM »
Ha! I opened the account with Fidelity, but I haven't funded it yet, as DH is not fully on board. I want to sock 25k in it, which, after all of our YTD charitable giving, would max us out. He's worried about what it will do to our AGI. We're always on the prowl for our next rental property and it could kill our ability to qualify. He has a point, so we're still negotiating. Fortunately,  we have a four-hour road trip today.
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chasesfish

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Re: Let's talk about DAFs
« Reply #66 on: December 27, 2017, 11:15:04 AM »
Banker here - Charitable deductions are reported on your schedule A and *after* your AGI.  It won't hurt you on qualifying for a rental
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seattlecyclone

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Re: Let's talk about DAFs
« Reply #67 on: December 27, 2017, 11:39:57 AM »
Opened my Vanguard DAF today. It was quick and painless.

Sent from my Nexus 6P using Tapatalk

Did you beat our two-minute record?

Opening the account with Vanguard Charitable and transferring mutual funds into there probably took me more than two minutes, but not a whole lot more. It was really quite simple.
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honeyfill

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Re: Let's talk about DAFs
« Reply #68 on: December 27, 2017, 11:53:36 AM »
Opened mine with Vanguard today,  the application took about 2 minutes but it took me 10 more to figure out which stocks had the highest gains so I would get the maximum tax advantage.  I opened mine for 30k just to have a little extra.  We usually give 5 -6k per year to charity so this should last us 6 years.  By then , I will have started SS and used up most of my income tricks , so i will need another tax write off!.



Trudie

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Re: Let's talk about DAFs
« Reply #69 on: December 27, 2017, 12:55:06 PM »
We just pre-paid our 2018 pledge commitments and will open a DAF in 2019 at the beginning of the year.

We have stuff with TIAA and so will go with them.  I'm lobbying them to reduce the minimum initial investment to broaden the appeal to people in a wider range of circumstances.  While the $5K initial investment doesn't make me cringe, it would make many of my peers cringe.  Many of them work in staff positions at colleges and universities -- the very people and institutions TIAA exists to support.

boarder42

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Re: Let's talk about DAFs
« Reply #70 on: December 27, 2017, 03:40:43 PM »
We just pre-paid our 2018 pledge commitments and will open a DAF in 2019 at the beginning of the year.

We have stuff with TIAA and so will go with them.  I'm lobbying them to reduce the minimum initial investment to broaden the appeal to people in a wider range of circumstances.  While the $5K initial investment doesn't make me cringe, it would make many of my peers cringe.  Many of them work in staff positions at colleges and universities -- the very people and institutions TIAA exists to support.

why are you wiating til next year are you going to itemize next year - if not that defeats the purpose of this.

Dicey

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Re: Let's talk about DAFs
« Reply #71 on: December 28, 2017, 08:52:07 AM »
Banker here - Charitable deductions are reported on your schedule A and *after* your AGI.  It won't hurt you on qualifying for a rental
Oh boy! We found a possible rental yesterday that we're going to make a lowball offer on. We figured we had a short window in which we could use our 2016 tax return. Your info is good news indeed. Thank you, chasesfish!
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Dicey

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Re: Let's talk about DAFs
« Reply #72 on: December 31, 2017, 04:47:54 PM »
Banker here - Charitable deductions are reported on your schedule A and *after* your AGI.  It won't hurt you on qualifying for a rental
Oh boy! We found a possible rental yesterday that we're going to make a lowball offer on. We figured we had a short window in which we could use our 2016 tax return. Your info is good news indeed. Thank you, chasesfish!
Oh well, there's an offer ahead of ours. Now we have to wait and see. Therefore, yesterday I loaded 15k into our Fidelity Giving Fund. With our YTD charitable donations, we probably couldn't write off a whole lot more than that + that was as much as I could sweet talk DH into. Good to have gotten something set up before it all goes away, in effect. I do have some very old stock that is set up as a DRIP. There's no way I could have flipped it fast enough to make the year-end deadline. I'll donate it next year. I won't get the write off, but I will avoid the cap gains haircut.

Then late yesterday, our realtor at home called. She's got a lead on hoarder house that's just a few blocks away from ours. Eh, maybe we'll end up doing a flip close to home. One door closes, another opens...
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chasesfish

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Re: Let's talk about DAFs
« Reply #73 on: January 01, 2018, 06:46:03 AM »
@Dicey Don't downplay $15,000, that's a huge f-ing amount of money!  Congratulations! 

Best wishes on the rental, I'm still kicking myself I've never owned (kept one).  1st house was meant to be a rental, but had too big of a tax free gain and corporate relo paying it so I had to take the money.
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MustacheAndaHalf

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Re: Let's talk about DAFs
« Reply #74 on: January 05, 2018, 09:31:23 AM »
Consider funding the donor advised fund (DAF) with stocks / mutual funds you've held more than a year.  When you donate cash, that cash is subtracted from your tax bill (a tax deduction).  When you donate stock (without selling), you skip selling for 15% tax and get the amount subtracted from your tax bill. 

Most charities can't handle being directly gifted shares of stock.  So another DAF benefit is turning appreciated stock into cash to donate.

I also recommend donating anonymously and ending the endless stream of mail that comes from donors who reveal their name and address.  With a DAF, your donation can simply come from Fidelity Charitable and the charity otherwise doesn't know who made the donation.

boarder42

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Re: Let's talk about DAFs
« Reply #75 on: January 05, 2018, 09:35:39 AM »
Consider funding the donor advised fund (DAF) with stocks / mutual funds you've held more than a year.  When you donate cash, that cash is subtracted from your tax bill (a tax deduction).  When you donate stock (without selling), you skip selling for 15% tax and get the amount subtracted from your tax bill. 

Most charities can't handle being directly gifted shares of stock.  So another DAF benefit is turning appreciated stock into cash to donate.

I also recommend donating anonymously and ending the endless stream of mail that comes from donors who reveal their name and address.  With a DAF, your donation can simply come from Fidelity Charitable and the charity otherwise doesn't know who made the donation.

yeah this is all well and good but for the most part this topic is mostly dead for 90% around here who wont be hitting the standard deduction limits under the new tax code anymore.  DAFs should now be large lump sum invested in every 4-5 years so you can reap tax rewards as much as possible

Dicey

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Re: Let's talk about DAFs
« Reply #76 on: January 05, 2018, 09:49:11 AM »
Consider funding the donor advised fund (DAF) with stocks / mutual funds you've held more than a year.  When you donate cash, that cash is subtracted from your tax bill (a tax deduction).  When you donate stock (without selling), you skip selling for 15% tax and get the amount subtracted from your tax bill. 

Most charities can't handle being directly gifted shares of stock.  So another DAF benefit is turning appreciated stock into cash to donate.

I also recommend donating anonymously and ending the endless stream of mail that comes from donors who reveal their name and address.  With a DAF, your donation can simply come from Fidelity Charitable and the charity otherwise doesn't know who made the donation.

yeah this is all well and good but for the most part this topic is mostly dead for 90% around here who wont be hitting the standard deduction limits under the new tax code anymore.  DAFs should now be large lump sum invested in every 4-5 years so you can reap tax rewards as much as possible
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katsiki

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Re: Let's talk about DAFs
« Reply #77 on: January 05, 2018, 01:41:14 PM »
I plan to fund the DAF every other year.  It should work out with my existing deductions.  YMMV of course.

In other news, Fidelity processed the check pretty quickly, considering they likely had a high volume.  I already setup my first grant.  Can't wait to see it approved and sent.  This is great!
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Dicey

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Re: Let's talk about DAFs
« Reply #78 on: January 05, 2018, 01:48:37 PM »
@Dicey Don't downplay $15,000, that's a huge f-ing amount of money!  Congratulations! 

Best wishes on the rental, I'm still kicking myself I've never owned (kept one).  1st house was meant to be a rental, but had too big of a tax free gain and corporate relo paying it so I had to take the money.
I'm not downplaying the money, but we have plenty of ready cash, and I have received part of a small inheritance this year that would have covered the difference. We met with our CPA last week and we could have given more, but I couldn't talk DH into the max max. He just freaked out over what a large percentage of his 2017 earned income it would have been (i.e. different anchor point for him than for me).

I didn't marry until I was 54. Now we're FI, I'm FIRE, but we live comfortably on his income. He's easygoing about money, so this is the first time in 5 years of marriage that we've had to negotiate over an expenditure, which was 1) totally weird and 2) had the spillover effect of reminding us just how damn lucky we are to have found each other. It also happened rather suddenly, so he didn't have time to process it. (He's a thinker.)  Also, charitable giving at the level I am more accustomed to is a new concept to him, so I really can't complain. I honestly think if I'd asked for a huge diamond, or a new car, he would have had an easier time saying yes. It's a total MPP, but it's about a DAF, so here it is.

----------------------------------

Despite lots of looking, we didn't identify a property, but our other realtor called with a lead on a hoarder house three blocks from our primary home, so there may still be some real estate fun on the near horizon.

One of the things we love about our rentals is that we choose great tenants. We're even still friends with the people who bought our flip house. It's like each new property we buy is a chance to make new friends.  Unexpected, to be sure, but that's what comes from choosing your tenants very carefully.

In other news, Fidelity processed the check pretty quickly, considering they likely had a high volume.  I already setup my first grant.  Can't wait to see it approved and sent.  This is great!
I had a similar experience with Fido, and am looking forward to building this account.
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