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Leveraging Donor-Advised Funds (DAFs) for Family Offices and Emerging Venture Capital Managers
- Venture philanthropy involves active engagement to maximize social impact coined by John D. Rockefeller III in the 1960s.
- The shift towards strategic philanthropy started in the late 1990s, influenced by Silicon Valley entrepreneurs.
- Donor-advised funds (DAFs) offer a flexible giving vehicle aligning philanthropy with investment strategies.
- DAFs provide an immediate charitable income tax deduction and allow donors to control distributions to charities.
- Utilizing DAFs effectively can unlock long-term value and support philanthropic goals in a strategic manner.
- Donors can contribute to DAFs and receive income tax deductions based on certain limitations and property types.
- DAFs are compared to private foundations and charitable trusts as flexible and accessible philanthropic tools.
- Choosing the right sponsor organization for a DAF is crucial and depends on philanthropic goals.
- Venture capital funds can leverage DAFs as a source of patient, mission-aligned capital for investments.
- Financial advisors play a vital role in maximizing DAF efficiency and supporting donors in strategic giving.
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