Strategic giving.

Jan 15

EDITION 09: INVEST ON PURPOSE

This past weekend, I was at dinner with a couple of girlfriends, chatting about BeeCene. One of them asked me about donor-advised funds (DAFs). As I began explaining, I realized I didn’t know as much as I thought. Determined to be more informed, I dove into the topic. So, this week, we’re talking about DAFs—a tool for strategic giving.

Did you know…

Affluent women influence 85% of giving decisions, and as women's incomes rise, they become increasingly more likely to give to charity than their male counterparts.

Donor-advised funds (DAFs) are charitable investment accounts for the sole purpose of supporting charitable organizations you care about. DAFs have grown faster than private foundations, workplace giving, and most other forms of philanthropy. And here’s something even more intriguing: Investments in DAFs have skyrocketed since 2007, growing to over $251 billion in 2023. Yet only 14% of women have discussed charitable planning strategies with a financial advisor, leaving a huge opportunity for women to make an even greater impact.

Let’s dive in.

Imagine this…

You're a successful professional at a major corporation. You regularly donate to charities throughout the year. This year, after selling your company stock options that you've held for over 5 years at a 300% gain, your tax bill is going to be substantial.

Instead of a usual year-end scramble to decide which charities to support, you contribute your appreciated stock to a DAF. Not only do you receive an immediate tax deduction, but you also avoid capital gains taxes on the stock. Now, you treat your DAF like a charitable savings account – you contribute when it makes tax sense, grow the money through investments, and thoughtfully grant funds throughout the year to causes you care about.

Welcome to donor-advised funds.

DAFs are like a charitable savings account with tax superpowers. You contribute assets, grow them through investments, and grant funds to causes you care about—all while enjoying significant tax benefits.

Here's what makes them special:

The three-part magic

Contribute: Donate cash, stocks, or other appreciated assets. Receive an immediate tax deduction, even if you haven’t chosen your charities yet.
Grow: Your contributions are invested tax-free, growing over time based on your chosen strategy (conservative to aggressive).
Grant: The money sits in the account, and when you're ready, recommend grants to any IRS-qualified public charity. Your DAF provider handles all verification and paperwork.

Why DAFs are having their moment

Simplification: One tax receipt instead of dozens
Legacy: Name successors to continue your giving tradition
Privacy: Option to give anonymously
Lower Entry Point: Usually $5,000+
Tax Efficiency: Deduct up to 60% of your adjusted gross income for cash gifts
Market Timing: Ability to contribute during high-income years or market peaks, then distribute gradually over time

How to apply this…

Let's be clear: DAFs are specifically for charitable giving and tax planning. Once you put money in, it must go to charity. It's not a wealth-building tool, but rather a smart way to maximize your charitable impact and tax benefits.

But what if you want to make an impact and grow your personal wealth? That's where BeeCene comes in. Through private market investing, you can earn financial returns for yourself while supporting businesses that drive positive change.

Pro Tip: BeeCene is busy building an investment platform that will make it easy to invest for good, at dollar amounts that work for you. Unlike DAFs, these investments build your wealth while creating meaningful change—you keep the returns!

Quick Compare:

DAFs > Best for: Pure charitable giving (money goes to charity, plus tax benefits)
BeeCene > Best for: Growing your wealth (you keep the returns while backing impact-driven businesses)