Personal charitable foundation

If you were lucky to acquire some wealth — and let’s be honest, this is mostly luck — a sensible way to pay it forward is by funding some needed non-profits. Let’s say you scored a bonus, an IPO, a bitcoin sale, early tech stock, or an inheritance. A donor-advised fund (DAF) is an easy way to gain the advantages of a personal foundation, without the hassles or expense of a personal foundation. A DAF is basically a mutual fund investment that you contribute to with cash or by transferring existing stock, with immediate tax benefits, and all the financial growth over time from that investment are completely tax free. But everything in the account, including gains, must be given to certified non-profits of your choice. You can start small. Fund aggregators like Fidelity, Schwab and Vanguard offer them. I recommend the Fidelity Charitable DAF which I have been using for several decades. Very clean, quick online interface. — KK

MoneyClaudia Dawson