Lowest Fees Donor Advised Fund?

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asc8u
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Lowest Fees Donor Advised Fund?

Post by asc8u » Thu Mar 29, 2018 9:21 am

Hi all,

With the new tax changes, it looks like I'd really benefit now from doing donations via a Donor Advised Fund.
I guess this topic isn't popular yet with the masses, so when I google for the answer to lowest fee Donor Advised Fund,
I get nothing.

Looking on this forum, I've seen that Fidelity has been repeatedly recommended, and I'd prefer it over Vanguard since the minimum
grant size can be a lot smaller. But before I put funds into Fidelity, I wanted to make sure no one else had any recommendations on
other funds. In particular, I wanted to make sure there weren't any funds which have lower fees.

The Bogleheads wiki mentioned that T.Rowe Price has a lower administrative fee of 0.5% instead of 0.6% which Fidelity and Vanguard
have, but their investment are options aren't indexes so their investment fees are much higher, and then total fees are worse in the end.

Any other suggestions? Thanks so much.

Gill
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Re: Lowest Fees Donor Advised Fund?

Post by Gill » Thu Mar 29, 2018 9:24 am

Schwab is quite comparable to Fidelity.
Gill

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gatorking
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Re: Lowest Fees Donor Advised Fund?

Post by gatorking » Thu Mar 29, 2018 9:27 am

I use Fidelity because it allows grants as small as $50.
"If it weren't for color printers, and man's need to find patterns where there are none, investment advisers would be a whole lot poorer." - yobria

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dm200
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Re: Lowest Fees Donor Advised Fund?

Post by dm200 » Thu Mar 29, 2018 9:57 am

gatorking wrote:
Thu Mar 29, 2018 9:27 am
I use Fidelity because it allows grants as small as $50.
Yes - our choice as well

If the amounts planned for a DAF are large enough, you could have both Vanguard and Fidelity. Use Vanguard for larger balances and grants, and Fidelity for lower ones.

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Artsdoctor
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Re: Lowest Fees Donor Advised Fund?

Post by Artsdoctor » Thu Mar 29, 2018 10:07 am

dm200 wrote:
Thu Mar 29, 2018 9:57 am
gatorking wrote:
Thu Mar 29, 2018 9:27 am
I use Fidelity because it allows grants as small as $50.
Yes - our choice as well

If the amounts planned for a DAF are large enough, you could have both Vanguard and Fidelity. Use Vanguard for larger balances and grants, and Fidelity for lower ones.
Yes. This is the best option for me as well (using both).

I think Fidelity is superior to Vanguard but I have a more complex portfolio at Vanguard so I prefer transferring over specific lots to VC.

Fidelity allows smaller grants and it also allows more flexibility in giving on behalf of others (Vanguard doesn't have a mechanism to recognize a grant in honor of someone or in memory of someone; Fidelity will also arrange to have a note sent to the person being honored whereas Vanguard will not).

It's also extremely easy to transfer assets from Vanguard Charitable to Fidelity Charitable.

All of that said, I like the investment options in Vanguard Charitable a bit more, all things considered.

jdb
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Re: Lowest Fees Donor Advised Fund?

Post by jdb » Thu Mar 29, 2018 10:45 am

Does a contribution from a RMD to a Donor Advised Fund qualify as a QCD even though the contribution would not be allocated to a specific charity until a subsequent year? In other words can one make a lump RMD contribution to a Donor Advised Fund and count it all as QCD even though the monies stay within the Donor Advised Fund until subsequent year?

Braumeister
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Re: Lowest Fees Donor Advised Fund?

Post by Braumeister » Thu Mar 29, 2018 11:00 am

You can't make a QCD to a DAF. It has to go directly to the charity.

J295
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Re: Lowest Fees Donor Advised Fund?

Post by J295 » Thu Mar 29, 2018 11:03 am

Fidelity and their DAF is very customer friendly in our experience

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dm200
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Re: Lowest Fees Donor Advised Fund?

Post by dm200 » Thu Mar 29, 2018 11:05 am

Braumeister wrote:
Thu Mar 29, 2018 11:00 am
You can't make a QCD to a DAF. It has to go directly to the charity.
My understanding as well.

inbox788
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Re: Lowest Fees Donor Advised Fund?

Post by inbox788 » Thu Mar 29, 2018 1:37 pm

asc8u wrote:
Thu Mar 29, 2018 9:21 am
I guess this topic isn't popular yet with the masses, so when I google for the answer to lowest fee Donor Advised Fund,
I get nothing.
When I googled, I got the article from the Chronicle of Philanthropy at the top in a highlighted box as well as the second result. The first result was Fidelity Charitable. I hope they can work to lower the fees, but the 0.6% administrative fee Fidelity/Schwab/Vanguard charge (plus fund fees) is in line with most other DAFs listed. A few have restricted offerings that may be lower if that's your thing (Nature Conservancy No fees). [don't know the details of Boston Foundation Fees are 0.15%. ] Higher asset values have somewhat lower fees, but remember, it's the sum of administrative fees plus investment fees that add to the costs.

https://www.google.com/search?q=lowest+ ... vised+Fund&

https://www.philanthropy.com/article/Wh ... nds/156495

annielouise
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Re: Lowest Fees Donor Advised Fund?

Post by annielouise » Thu Mar 29, 2018 1:47 pm

When we opened ours, Schwab, but not Fidelity, allowed for more options for privacy. (For example, giving just fund name, or fund name & our names but not our address, etc.). Fidelity may have changed their policies since then.

We now make all of our grants with just the fund name.

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dm200
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Re: Lowest Fees Donor Advised Fund?

Post by dm200 » Thu Mar 29, 2018 3:59 pm

annielouise wrote:
Thu Mar 29, 2018 1:47 pm
When we opened ours, Schwab, but not Fidelity, allowed for more options for privacy. (For example, giving just fund name, or fund name & our names but not our address, etc.). Fidelity may have changed their policies since then.

We now make all of our grants with just the fund name.
Fidelity has, as best I understand, three options for grants:

1. Name of the fund name [in our case something like D & M family charitable fund]
2. Just name(s) and of us (D & M last name in our case)
3. Anonymous

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