Welcome back to PSA Thursday, a mostly-weekly segment in which we talk about how to handle money, work, and life in the middle of a pandemic.
In this episode, we cover what donor-advised funds are, how they work, how to open one, and the benefits of including a donor-advised fund in your financial plan or giving strategy.
Here’s what we discuss:
- The functionality of a donor-advised fund
- Reasons why you’d want to open one
- A step-by-step overview of getting started with a donor-advised fund
- The tax strategies you can employ
- The tax benefits of a donor-advised fund
- Why a donor-advised fund is a convenient, hassle-free way to donate
- The potential downsides and considerations to make beforehand
- Minimum requirements to open a donor-advised fund with Vanguard, Fidelity, and Schwab
- The fees associated with the account
- How to maximize the impact that you make with your contributions