DAFs: What They Are, Which Misguided Orgs Oppose Mild Legislations on Them, and Why You Should Care

[Image description: An adorable black-footed ferret, standing upright in the snow, looking at the camera. They have a cream-colored coat, brown legs with black feet, small round ears, and dark, liquid eyes that steal your heart. No, this ferret has nothing to do with DAFs. Image by Rohan Chang on Unsplash.]

Hi everyone. Donor-Advised Funds (DAFs) is not the most riveting of topics, I will admit. Sometimes, when I have insomnia, I read about DAFs, and that usually does the trick, especially when combined with some melatonin. However, they are rapidly growing as a vehicle for charitable giving, have almost no regulations whatsoever, and are rife with inequity. So we all need to care about them.

It seems though that some colleagues are still confused by DAFs and what the problem is and so don’t want to tune in to this conversation. I’m going to explain it simply for those not familiar, so that you don’t fall asleep; apologies to colleagues who are more knowledgeable in this area than I am.

Imagine that you made millions of dollars selling naturally fermented pickle products. After buying yourself a yacht, you think “Huh, I should probably donate some money to charity. That will help people and also prevent me from paying so much in taxes, win-win.”

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