Tech Millionaires Increasing Use of Donor-Advised Funds to Donate Private Shares
Donor-advised funds (DAFs) are becoming increasingly popular among tech millionaires, especially as private companies like Anthropic and OpenAI see significant valuation growth. DAFgiving360, a donor-advised fund affiliated with Charles Schwab, reported that three-quarters of its donations over the past year were non-cash assets such as shares in public or private firms, real estate, crypto, art, and collectibles. DAFs allow donors to claim an immediate tax deduction by donating appreciated assets without paying capital gains taxes. This is particularly beneficial for tech workers who hold valuable private company stock that may be difficult to sell directly due to restrictions from the companies themselves. The funds also provide flexibility in deciding when and where to distribute donations, making them especially appealing to younger donors. With potential IPOs on the horizon at firms like Anthropic and OpenAI, more employees are seeing large gains in their equity holdings. DAFgiving360 helps these individuals liquidate assets efficiently while maximizing tax benefits.
Topics: Charitable Donations Private Company Shares Tax Deductions Tech Industry