Quick Qs: Does your DAF sync with personal capital?

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camillus
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Quick Qs: Does your DAF sync with personal capital?

Post by camillus » Tue Sep 11, 2018 11:35 am

Hi all,

I started a thread about Donor Advised Funds that became hair-brained, esoteric, and possibly idiotic - but potentially lucrative: viewtopic.php?f=1&t=258371&newpost=4112 ... ead#unread

I wanted to pop out of that thread and ask a few questions to the broader readership:

1) Does your DAF sync with personal capital? This is valuable to me since I'd like to reckon the DAF as a part of my total asset allocation (I know it's not my asset) - for rebalancing.

2) How much value is there to having your DAF with the same company as your brokerage account? Example: Fidelity brokerage has your taxable, and your DAF is Fidelity Charitable. I'm trying to minimize the number of new accounts I have to open. I already have an account with Vanguard, and my wife has a 403b with TIAA. I could do my taxable investing at Vanguard and make contributions to the DAF at TIAA Giving Fund. (Vanguard's DAF is ruled out for me because of fees and minimums).

It would seem that having the DAF and taxable with the same place means that you can make donations with the click of a button.

If I did Vanguard taxable to TIAA charitable, I think I might have to pick up the phone, which I'd like to avoid.

Thanks!

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mhc
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Re: Quick Qs: Does your DAF sync with personal capital?

Post by mhc » Tue Sep 11, 2018 12:57 pm

I use Vanguard and Vanguard Charitable. I have linked VC as an outside account so I can see it when I log into V. I don't use personal capital, but it seems like you should be able to link a DAF.

I know people on here who say donating from a V taxable account to Fidelity Charitable is easy.

I have not seen much on TIAA Charitable.

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dm200
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Re: Quick Qs: Does your DAF sync with personal capital?

Post by dm200 » Tue Sep 11, 2018 1:16 pm

No other accounts with Fidelity - but we have the Fidelity DAF - no problems - we love it.

Mike Scott
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Re: Quick Qs: Does your DAF sync with personal capital?

Post by Mike Scott » Tue Sep 11, 2018 1:38 pm

The funds in the DAF are not yours so they have no relationship to the management of your personal funds or rebalancing. As the director of the DAF, you direct the the management as you think best for the DAF. I am finding the question of risk taking in the DAF vs my personal funds to present some interesting challenges. Do I take more or less risk with "other peoples money"? Do I go with potential for growth vs safety?

Fidelity has a relatively low minimum for opening a DAF. It would be simpler to keep everything at the same place but it may not always be practical.

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camillus
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Re: Quick Qs: Does your DAF sync with personal capital?

Post by camillus » Tue Sep 11, 2018 2:16 pm

Mike Scott wrote:
Tue Sep 11, 2018 1:38 pm
The funds in the DAF are not yours so they have no relationship to the management of your personal funds or rebalancing.
I think about the DAF differently, though I agree the money is no longer mine. Here are two ways to explain my thinking:

1) If I did not have a DAF, I would be doing charitable contributions in retirement out of my retirement accounts, which all along were invested per my asset allocation.

2) Here's an analogy with an HSA.

Yes, I invest money in the HSA with the intention on spending on a certain kind of expense: healthcare, but it still makes sense to maximize it's tax advantages and invest it per my asset allocation. They money doesn't yet belong to the hospital or my doctor, but it will someday. The HSA is a way to achieve tax-free growth for a future stream of expenses.

Money in the DAF is earmarked for a certain kind of expense I will have as long as I am alive: charity, but it still makes sense to maximize it's tax advantages and invest per my asset allocation. The money doesn't yet belong to my favorite charities. The DAF is a way to achieve tax-free growth for a future stream of expenses.

In other words, I think about a DAF as a Charitable IRA.

LinusP
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Re: Quick Qs: Does your DAF sync with personal capital?

Post by LinusP » Tue Sep 11, 2018 3:30 pm

camillus wrote:
Tue Sep 11, 2018 2:16 pm
In other words, I think about a DAF as a Charitable IRA.
For what it's worth, I think your explanations on this keep getting clearer. Thanks for sharing your perspective.

aristotelian
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Re: Quick Qs: Does your DAF sync with personal capital?

Post by aristotelian » Tue Sep 11, 2018 6:00 pm

My Schwab DAF showed up automatically with all my other linked Schwab accounts when I used Personal Capital.

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camillus
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Re: Quick Qs: Does your DAF sync with personal capital?

Post by camillus » Tue Sep 11, 2018 7:02 pm

aristotelian wrote:
Tue Sep 11, 2018 6:00 pm
My Schwab DAF showed up automatically with all my other linked Schwab accounts when I used Personal Capital.
Thanks! So is there only one login for both your DAF and brokerage accounts? One webpage?

I'm wondering how easy it is to transfer stock. Just a few clicks?

I wonder if Fidelity is the same.

Thanks for letting me ask questions.
LinusP wrote:
Tue Sep 11, 2018 3:30 pm
camillus wrote:
Tue Sep 11, 2018 2:16 pm
In other words, I think about a DAF as a Charitable IRA.
For what it's worth, I think your explanations on this keep getting clearer. Thanks for sharing your perspective.
Thank you! Perhaps the fog in my head is lifting a bit.

aristotelian
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Re: Quick Qs: Does your DAF sync with personal capital?

Post by aristotelian » Tue Sep 11, 2018 7:25 pm

camillus wrote:
Tue Sep 11, 2018 7:02 pm
Thanks! So is there only one login for both your DAF and brokerage accounts? One webpage?

I'm wondering how easy it is to transfer stock. Just a few clicks?

I wonder if Fidelity is the same.

Thanks for letting me ask questions.
I was talking about Personal Capital. As soon as I linked my Schwab account, it automatically linked the DAF.

But yes, if you log into your Schwab account, it does show the DAF on your main accounts page. If you click through, it takes you to their charitable website. Yes, donating from your Schwab account to your DAF is simple. I haven't tried it with an external brokerage.

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camillus
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Re: Quick Qs: Does your DAF sync with personal capital?

Post by camillus » Tue Sep 11, 2018 8:25 pm

aristotelian wrote:
Tue Sep 11, 2018 7:25 pm
But yes, if you log into your Schwab account, it does show the DAF on your main accounts page. If you click through, it takes you to their charitable website. Yes, donating from your Schwab account to your DAF is simple. I haven't tried it with an external brokerage.
Thank you very much.

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mhc
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Re: Quick Qs: Does your DAF sync with personal capital?

Post by mhc » Wed Sep 12, 2018 10:39 am

Mike Scott wrote:
Tue Sep 11, 2018 1:38 pm
The funds in the DAF are not yours so they have no relationship to the management of your personal funds or rebalancing. As the director of the DAF, you direct the the management as you think best for the DAF. I am finding the question of risk taking in the DAF vs my personal funds to present some interesting challenges. Do I take more or less risk with "other peoples money"? Do I go with potential for growth vs safety?
This is correct, but a rather limited view.

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