Grateful to you Michael for analysis and summary/guide, very useful to me as the landscape has changed significantly since I last had a DAF 30 years. A couple of things:
1) Under Fees section, you state: "If you make $75,000 and you donate 10% of your income, you'll hit the basic plan's limit in 4 years and the family plan's limit in 7 years." BUT since the prior sentence indicates the lifetime limit applies only to NON-cash, it seems to me that for many/most people this condition would not be a concern. I was reading/skimming fast, and initially that sentence threw me as a Daffy deal breaker. And, in your example of $75K income and 10% annual donation, presumably the donations would be "cash" and not have a lifetime cap. It might just be me, but perhaps this aspect of the fee section might be worded a bit differently! {Personally, I'm leaning toward Daffy but have no affiliation with them.}
2) I particularly appreciated your comments on the basis of "risk" for those DAF vendors that are startups. The structure does seem to mitigate substantial aspects of risk. Perhaps if you occasionally updated info on their indebtedness, which for one was only accounts payable (for outstanding bills that were not overdue), that'd be a great service to all.
3) Perhaps one area you might wish to address in the future: Charitable bequests written in one's Will with the named charity being the DAF. On the surface of things, I don't believe this would differentiate or be a problem with any of the vendors, but I don't know. Somewhat similarly to the tax advantages during one's lifetime of donating appreciated stock vs donating cash, to reduce Federal and I believe for many/all state level estate taxes as well that naming in one's Will a DAF might be worthwhile. One would want to name a contingent alternative DAF or charity(s) in case the named DAF goes belly up. And, have those who have rights to submit requests to your DAF know your wishes in case you die unexpectedly.
Again, thank you very much. I find it hopeful and encouraging to read comments here and see so much interest.
Grateful to you Michael for analysis and summary/guide, very useful to me as the landscape has changed significantly since I last had a DAF 30 years. A couple of things:
1) Under Fees section, you state: "If you make $75,000 and you donate 10% of your income, you'll hit the basic plan's limit in 4 years and the family plan's limit in 7 years." BUT since the prior sentence indicates the lifetime limit applies only to NON-cash, it seems to me that for many/most people this condition would not be a concern. I was reading/skimming fast, and initially that sentence threw me as a Daffy deal breaker. And, in your example of $75K income and 10% annual donation, presumably the donations would be "cash" and not have a lifetime cap. It might just be me, but perhaps this aspect of the fee section might be worded a bit differently! {Personally, I'm leaning toward Daffy but have no affiliation with them.}
2) I particularly appreciated your comments on the basis of "risk" for those DAF vendors that are startups. The structure does seem to mitigate substantial aspects of risk. Perhaps if you occasionally updated info on their indebtedness, which for one was only accounts payable (for outstanding bills that were not overdue), that'd be a great service to all.
3) Perhaps one area you might wish to address in the future: Charitable bequests written in one's Will with the named charity being the DAF. On the surface of things, I don't believe this would differentiate or be a problem with any of the vendors, but I don't know. Somewhat similarly to the tax advantages during one's lifetime of donating appreciated stock vs donating cash, to reduce Federal and I believe for many/all state level estate taxes as well that naming in one's Will a DAF might be worthwhile. One would want to name a contingent alternative DAF or charity(s) in case the named DAF goes belly up. And, have those who have rights to submit requests to your DAF know your wishes in case you die unexpectedly.
Again, thank you very much. I find it hopeful and encouraging to read comments here and see so much interest.