Hi everyone. I had to step away and I see there was some discussion of my too-strongly-worded post about "abusing" the DAF. That's probably not exactly what I meant. However, someone did point out a way it can happen with self-dealing, etc. I would say another area DAFs can be abused is using them for really arcane, difficult, somewhat-self dealing assets.
But that's not what I'm talking about. I should have said something like "hoarding" the DAF. DAFs are great. I'm going to use mine this year to a very full extent. But we are also of modest means so it won't be millions, and over the next three years, we'll direct it out.
The problem with hoarding (probably another word I can't find) is that some use it strictly as a tax shelter and really don't even care about the directed donation part. Maybe give that part as a legacy gift to a family. Look, that's within the rules and not illegal. I get it.
But the charities suffer if nothing, or only a trickle, is flowing out. For DAFs to really be successful for the greater good of society, that stuff has to flow out.
A $2000 cash-only incentive gets the flow going. Cash flows.
