Bill Gates and Warren Buffett have issued a challenge to the world’s most wealthy individuals. They asked their fellow billionaires to make a pledge to give away at least half of their wealth to charitable causes over the course of their lives.Both of these gentlemen have practiced what they preach. Gates has donated billions of dollars to his own Bill and Melinda Gates Foundation. Buffett has given Berkshire Hathaway stock valued at over $10 billion to the Gates Foundation over the last several years.
Though few have great wealth like Bill Gates and Warren Buffett, a lot of people are in a position to give something back to charitable causes as part of their legacies. The creation of a private family foundation is really not practical for most people. There are considerable expenses involved in the creation of the foundation, there are also ongoing expenses to maintain it. Even people with considerable resources can find establishing a foundation hard to justify.
The charitable giving vehicle that has emerged as a popular alternative is the donor advised fund. With these funds you as the donor can make recommendations requesting that grants be made to multiple charities while providing just one donation into the fund. This allows for very efficient giving and streamlines your accounting considerably. Plus, the fund has the infrastructure in place so the costs incurred by you as the donor are minimal.
To get all the details about donor advised funds contact an experienced and qualified estate planning attorney whose practice includes charitable planning.
- Living Trusts and Incapacity Planning - March 31, 2020
- Estate Planning and Charitable Giving — Key Points - March 29, 2020
- Over-Funding Your Retirement Plan: A Potential Estate Planning Problem - March 27, 2020