Posted: 11/24/2025 7:48:32 AM EDT
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Looking for any experiences working with vanguard or fidelity as the financial arm of holding the financials as investments? Anyone using either of those or even Bank of America? Any other entities handling their accounts with the ability to write checks and invest? Looks like vanguard/fidelity got smart on the 501c3 play. Instant message me if you have any experience that could help? Or post? |
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I don't, but I have learned that if Fidelity is one of the options it has always been the best choice for me. I am curious on the motivation - for you the tax impact is the same whether you donate directly now or donate to a DAF and then hand out the money down the road. The only benefit I see is to the charities IF the money you put in a DAF outgrows inflation and the future value is greater than the present value of your principal? ie. the charity gets more value in the future rather than less value now. |
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I can't speak for either Vanguard or Fidelity other than I have IRA's with them and am satisfied. BOA handled the trust that my grandparents left for my uncles. Between their mutual fund loads and trustee fees, BOA made more off of the trust than my uncles did. |
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Thanks for the input. It’s looking like for the DAF we’ll be going with fidelity or vanguard. Running into the issue of inside a DAF you can typically only invest in donor pools not all their assets. For vanguard, one of their growth funds and a SNP500 was the most aggressive. Fidelity, I’m still trying to get a straight answer what is available. Not as aggressive as I’d like but understand why. We’ll be doing the DAF Q1-2026 with a time horizon for 2028. Suspect we’ll use a Bank of America or similar for the checking account mechanism at a later date. Fortunately for all the plays, the Carry Forward for taxes has a 5 year window. You can use throttling the AGI for which year you want to maximize or minimize the carry forward. Unless there is a one stop shop I’m missing? |
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Looks like we’re moving forward with Fidelity in Q1-2026. They consistently had the best reviews We’ll be taking the itemized tax deduction in 2026 then be able to itemize our property tax mortgage interest and the DAF. Versus the standard deduction. I’ll be the lead on the account directing the funds and my wife the backup. Might have a carry forward tax deduction applied for a 5 year run out but well know once I finalize the numbers. Or we might eat it all up in 2026. Good play for stacking or bunching tax deductions during volatile years or having those cards to play. Something to think about for those looking at the long game. Granted you can’t go QCD’s to a DAF but you can go QCDs to a 501c3. And a charitable trust to a 501c3 Appreciated or unappreciated shares are allowed in the majority of the scenarios with a tax carry forward play too. One other driver of these plays is setting up the ROTH conversions brackets for 5-6 years so I’ll be ready to go in 2029. |