As a financial advisor, knowing when to introduce a donor-advised fund (DAF) can elevate your client relationships and enhance their tax strategy.
Here are the most common situations when a DAF is the perfect fit:
- Rebalancing a portfolio
Offload appreciated stock into a DAF for tax-efficient giving while supporting the causes your client cares about.
- Managing concentrated positions
Got a client with a concentrated stock position? Recommend donating a portion to a DAF—maximizing tax benefits and diversifying their holdings at the same time.
- Windfall or high-income year
Whether from a bonus, stock options, or a liquidity event, a DAF offsets the tax burden while allowing your client to donate strategically over time.
- Sale of a business
Clients selling a business? Have them set up a DAF before the sale to reduce capital gains taxes and lock in charitable benefits.
- Estate planning
A DAF ensures your clients’ legacy by involving the next generation in philanthropy while offering flexibility to give to multiple charities.
Why DAFs?
Tax-smart, flexible, and impactful—DAFs help your clients give with purpose while planning for their financial future. Make sure to keep DAFs in your toolkit for these scenarios and many more!
Reach out at [email protected] and discover how Ren can help you deliver the philanthropic solutions your clients need.
