FYI: Charitable investors who set up donor-advised funds to ultimately give the proceeds to specific issues, like gender-based causes or environmental protection, may be surprised to find their money sitting in the fund actually works against their values.
According to a new study from Cornerstone Capital Group, a growing number of people want to invest the money in their DAFs for impact. However, only a small portion of the more than $23 billion contributed to donor-advised funds in 2016 was used for such purpose, according to the National Philanthropic Trust.
Regards,
Ted
Comments
https://www.investmentnews.com/article/20181115/FREE/181119943/money-in-donor-advised-funds-can-make-impact-before-distribution
The article's first statement, that "money sitting in the [donor-advised] fund actually works against their values" is misleading. The rest of the article (and the Cornerstone study) go into ways that the money sitting in DAFs could be invested to make a positive impact. That's different from suggesting that the money that's sitting there is having a negative impact, i.e. actively working against their values.
Still, the point is that one could/should consider what good the money's doing while awaiting donation. For example, here's Fidelity Charitable's list of its four investment pools available for "sustainable and impact investing":
https://www.fidelitycharitable.org/investment-options/impact-investing-pool.shtml
Regards,
Ted