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This program provides education not

0:02

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for endorsements and interviews see

0:07

the truth a yf.com disclosure

0:09

page for details This is

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where technology innovation and personal

0:14

finance come together This is

0:16

the truth about your future with

0:18

Rick Edelman It's

0:32

Friday, November 22nd, on today's

0:34

show, how new innovations cause

0:36

disruption in the investment world, plus

0:38

a conversation with Adam Nash,

0:40

the co-founder and CEO of

0:42

Daffey about donor advised funds.

0:44

Got a question here from Edward

0:47

in Chicago. Hi Rick, big fan

0:49

of yours over many years. I

0:51

have mutual funds primarily in

0:54

American funds and the Barron

0:56

Funds family. I have large capital

0:58

gains in them. If they do not

1:00

convert their funds into ETFs, am

1:02

I stuck with their mutual funds?

1:04

Well, Edward, I'm not really sure

1:06

that I would refer to the

1:09

American funds particularly, but also Barron,

1:11

as being stuck with them. First

1:13

of all, you have to recognize,

1:15

and I think you do, which

1:17

is why you asked your question,

1:19

that... Mutual funds generally are more

1:21

expensive than ETFs. This is a

1:23

really big part of the reason

1:26

why I advocate that people move

1:28

their money from mutual funds and

1:30

over to ETFs because the expense

1:32

ratio in the ETFs are generally

1:34

so much cheaper. However, that's not always

1:36

the case. And a good case in

1:38

point is the American family. of

1:41

mutual funds. American has always had a

1:43

really strong reputation of being a low-cost

1:45

fund provider. So if lowering your annual

1:48

expenses is your really only reason for

1:50

wanting to get rid of your American

1:52

funds investments, I don't think I would

1:55

be terribly... motivated to make that switch.

1:57

So keep that in mind. Second, you

1:59

really have to do the analysis, if

2:02

you are dealing with a high expense

2:04

fund, if you really do want to

2:06

sell it and incur the capital gain.

2:09

A better way of examining the answer

2:11

to that question, rather than merely the

2:13

tax implication, is the investment allocation? Meaning,

2:16

is this a fund that you currently

2:18

own that you're willing to continue owning

2:20

for the next 10 or 20 years?

2:23

If the answer is yes, then... you

2:25

might want to consider keeping it to

2:27

avoid having to pay the tax right

2:30

now. On the other hand, if it's

2:32

not something that you really feel strongly

2:34

about that you're not really confident that

2:37

its future performance is going to be

2:39

competitive to alternative options, then you should

2:41

go ahead and sell it. Not because

2:44

you're trying to lower your expenses, but

2:46

because you're trying to get a more

2:48

optimal portfolio. I think you should talk

2:51

with a financial advisor, perhaps the one

2:53

who helped you obtain these investments in

2:55

the first place, or some other financial

2:58

advisor for a second opinion, to help

3:00

you make the final decision. We'll

3:04

be back with more here

3:06

on the truth about your

3:08

future. Stay with us. Thousands

3:11

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3:24

back to The Truth About

3:26

Your Future. Hey, let me

3:29

ask you this question. Have

3:31

you ever heard of Cheg?

3:33

I'm raising this because of

3:36

the conversation we had yesterday

3:38

about new investment opportunities. I

3:40

shared... with you three new

3:42

ETFs that were recently launched

3:45

from State Street Global Advisors

3:47

in partnership with Galaxy, a

3:49

big crypto asset management firm.

3:51

And I made the comment

3:54

in the conversation yesterday, if

3:56

you missed it, the link

3:58

to it's in the show

4:01

notes, that crypto is a

4:03

new and growing asset class,

4:05

didn't exist 20 years ago,

4:07

really hardly existed until the

4:10

last seven or eight years,

4:12

and all of a sudden

4:14

it's on the scene in

4:16

a major way. This represents

4:19

an opportunistic investment play, meaning

4:21

it's an opportunity for you

4:23

to engage in an investment

4:26

opportunity that didn't exist until

4:28

relatively recently. And that's why

4:30

I want to ask you.

4:32

if you've ever heard of

4:35

Cheg. Cheg is an online

4:37

education company and for, oh,

4:39

the past decade or more,

4:42

it's been the go-to resource

4:44

for students who need help

4:46

with their homework. I'm not

4:48

talking just college kids, I'm

4:51

also talking about kids in

4:53

junior high and high school.

4:55

Kids pay $19.95 a month.

4:57

They go online to Cheg

5:00

and they can get pre-written

5:02

answers to questions that they

5:04

pose. Plus, they get on-demand

5:07

help from online experts. Cheg

5:09

has hired thousands of people,

5:11

mostly in India, to deliver

5:13

this service. And during the

5:16

pandemic, the shift to online

5:18

learning sent Cheg's stock to

5:20

record highs. It was a

5:22

favorite on Wall Street. In

5:25

2021, in the middle of

5:27

the pandemic, Cheg was worth

5:29

$15 billion. But then, last

5:32

year... It's free, it's instantaneous,

5:34

and it does everything Cheg

5:36

does. And a lot of

5:38

people would argue it does

5:41

it even better. Since the

5:43

launch of Cheg Cheg has

5:45

lost more than half a

5:47

million subscribers. Its stock is

5:50

down 99% from the high.

5:52

The rumor is that the...

5:54

company doesn't even have enough

5:57

revenue to pay its debts.

5:59

They've already fired 25% of

6:01

the staff. Cheg, it looks

6:03

like, is on its way

6:06

to bankruptcy as a result

6:08

of being an obsolete, outdated

6:10

technology replaced by newer, cooler,

6:12

better tech. This isn't the

6:15

first time technology has rendered

6:17

one company worthless as another

6:19

company comes on the scene.

6:22

Remember the Sony Beta Max?

6:24

That was all the rage

6:26

until VHS came around. Remember

6:28

blockbuster video? That was the

6:31

rage until Netflix. Remember Lotus

6:33

123? You're really dating yourself

6:35

if you do. That of

6:37

course was wiped out by

6:40

Microsoft Excel. My point is

6:42

that companies have been blown

6:44

away by technical advancements ever

6:47

since we've had technology. Horse

6:49

and Buggies were wiped out

6:51

by the Model T, that

6:53

was 100 years ago. So

6:56

my point is simply this.

6:58

As you are looking at

7:00

your investment portfolio, you've got

7:03

to ask yourself two questions.

7:05

Number one, is your portfolio

7:07

filled with old, established, but

7:09

old, out-of-date companies with 20th

7:12

century tech? If so, a

7:14

lot of those stocks are

7:16

going to go the way

7:18

of cheg as they get

7:21

replaced. by bigger, better, newer

7:23

companies. And secondly, does your

7:25

portfolio own any of those

7:28

new companies? This is opportunistic

7:30

now. The notion of a

7:32

long-term, set-it-and-forget-it, buy-and-hold approach to

7:34

investing is quickly falling by

7:37

the wayside. This is why

7:39

you need to consider adding

7:41

crypto to your portfolio like

7:43

we discussed yesterday. It's an

7:46

opportunity you didn't have 10

7:48

years ago. And maybe the

7:50

opportunity won't exist 10 years

7:53

or 20 years from now.

7:55

But today, it's a huge

7:57

opportunity. Many, including me, think

7:59

it's the best. opportunity available

8:02

on Wall Street. Think about

8:04

it. You don't want a

8:06

portfolio filled with checks. Coming

8:08

up next, my conversation with

8:11

Adam Nash, the co-founder and

8:13

CEO of Daffey, about donor

8:15

advised funds. Stay with us.

8:31

You're listening to the truth about your

8:33

future. You know, it's that time of

8:35

year, isn't it? We're beginning to think

8:37

of year and gift giving and the

8:40

most important gift that you can make

8:42

this year is to a charity or

8:44

a non-profit organization and that is something

8:46

lots of Americans do every year. There's

8:48

a relatively new opportunity available these days

8:50

that you may not be terribly familiar

8:53

with. They're called DAF donor advised fund.

8:55

And to help us understand what these

8:57

really are, and a really new, pretty

8:59

cool deaf that's available, is coming from

9:01

Adam Nash. Adam is the co-founder and

9:04

CEO of Daffey. If you're a financial

9:06

advisor, you know Adam very well. He

9:08

was the president and CEO of Wealthfront,

9:10

one of the first and one of

9:12

the biggest robot advisors. Prior to that,

9:14

Adam was with Dropbox, LinkedIn, eBay, eBay,

9:17

he's now teaching at Stanford. He's a

9:19

Silicon Valley guy. It's good to see

9:21

you here. How are how you doing.

9:23

Hey Rick, it's good to be here.

9:25

And just to make it very clear,

9:28

you know, Daffey is one of those

9:30

fun acronyms, one of those fun app

9:32

names. It's the donor advised fund for

9:34

you, but very very happy to talk

9:36

with you and certainly your listeners about

9:39

the opportunity to give better. So I'm

9:41

glad we're putting to rest any allusion

9:43

to the looney tunes. And so we

9:45

want to talk about donor advised funds

9:47

and I think we need to start

9:49

at the beginning. I've been involved with

9:52

donor advice funds. I think ever since

9:54

Franklin Templeton launched theirs decades ago, and

9:56

I had accounts of fidelity's donor advice

9:58

fund and with Schwab's donor advised fund.

10:00

These things are holding an awful lot

10:03

of money for an awful lot of

10:05

people, but let's start from the very

10:07

beginning, Adam, and explain to folks what

10:09

on earth is a donor advised fund.

10:11

How does it work? Yeah, the donor

10:13

advice fund has actually been around in

10:16

the US for a very long time.

10:18

It actually dates back in some accounts

10:20

to the 30s, but most people haven't

10:22

heard about them until more recently. The

10:24

larger brokerages, the finalities, the swapped, and

10:27

vanguard started offering them in the last

10:29

couple of decades. But for most people

10:31

the way I explain the donor advise

10:33

fund is I put it in the

10:35

context of other tax advantaged accounts That

10:37

serve a financial purpose for people's planning

10:40

right most of us are familiar with

10:42

retirement accounts like individual retirement accounts or

10:44

401k is offered by our employer Some

10:46

of us might even be familiar with

10:48

529 plans a tax advantage account for

10:51

college savings and in some ways the

10:53

donor advised fund is just a tax

10:55

advantaged account for charitable giving The way

10:57

it works is pretty simple, right? You

10:59

have some money that you want to

11:01

put aside for charity. You put it

11:04

aside with a donor advised fund, a

11:06

platform provider, who offers that type of

11:08

account. When you give them the funds,

11:10

it counts as a charitable donation, so

11:12

you get that tax deduction for making

11:15

a charitable donation at that moment. The

11:17

money is invested tax-free and can compound

11:19

over time. And then any time you

11:21

want that money to go to an

11:23

operating charity, just tell the donor advised

11:25

fund where to send the money, and

11:28

they get the money to the charity.

11:30

And in theory, a donor advised fund

11:32

can support almost any legal charity across

11:34

the United States, over 1.7 million of

11:36

them at last count. So it sounds

11:39

pretty simple and easy, but why would

11:41

somebody want to do this? I'll play

11:43

Devil's Advocate, which if you want to

11:45

donate advocate with, if you want to

11:47

donate money to a intermediary step. Well,

11:49

it's a great question and by the

11:52

way, I mean, our entire mission at

11:54

Daphne is to help people be more

11:56

generous and more often. So I'd be

11:58

the first to say that if you

12:00

want to give money to a charity,

12:03

give... money to a charity. That's fantastic.

12:05

But like a lot of accounts, the

12:07

donor advice fund serves multiple purposes and

12:09

really is a better system for giving.

12:11

First and foremost, we all know how

12:13

important it is to put money aside

12:16

for the goals that you have that

12:18

are important to you. It's one of

12:20

the ways people hit their financial goals.

12:22

If you want to save money for

12:24

retirement, you put some money aside out

12:27

of each paycheck. If you're saving up

12:29

to buy a house, a down payment,

12:31

you might put aside money every month.

12:33

And the donor advised fund lets you

12:35

do that for charity by separating the

12:37

question of when do you put money

12:40

aside from the question of who do

12:42

you want to give it to. And

12:44

as you and I both know a

12:46

lot of people struggle with the basic

12:48

financial housekeeping of just putting money aside

12:51

for their goals. So first and foremost

12:53

from a personal finance standpoint the donor

12:55

advised fund is a great product. The

12:57

second fact is just from a system

12:59

of giving, having all of your giving

13:01

in one place. really takes the stress

13:04

out of tax time. I can't tell

13:06

you how many of our members actually

13:08

just really enjoy the fact that at

13:10

the end of the year they can

13:12

find all their donation receipts in one

13:15

place. Simple questions of how much money

13:17

you gave to a charity last year,

13:19

right? How much money did I give

13:21

to my kids school last year or

13:23

my alma mater or to that organization?

13:25

And donor advice ones make it very

13:28

easy to set up things like recurring

13:30

donations. You know, many of us support

13:32

the same organizations. And having a donor

13:34

advice fund lets you actually set up

13:36

that system so it happens automatically, which

13:39

is really fantastic. But the last benefit

13:41

I think the donor advice fund, which

13:43

I think too many people don't really

13:45

take advantage of, is that it turns

13:47

out that you don't have to give

13:49

just cash to charities. Actually, we can

13:52

donate investments, stocks, ETFs, mutual funds, even

13:54

crypto, things that you've held more than

13:56

a year. You could actually donate to

13:58

charity and it's a wonderful thing to

14:00

do not just for the charity, but

14:03

with amazing tax benefits. The problem is

14:05

most charities don't accept. accept things like

14:07

stock or ETFs or mutual funds or

14:09

crypto, but the donor-advised fund can. And

14:11

so if you have a donor-advised fund,

14:13

you can take advantage of the benefits

14:16

of donating appreciated investments while not complicating

14:18

the issue for the charities you support.

14:20

You give the money the donor-advised fund,

14:22

gets the money to the charity. And

14:24

so it really can be useful across

14:27

the board for people who care about

14:29

giving on a regular basis. So let's

14:31

elaborate a little bit on those tax

14:33

benefits. Let's say that I've got a

14:35

bunch of money in some investment of

14:38

some kind, like you said, stocks, bonds,

14:40

mutual funds, ETFs, crypto. If I were

14:42

to sell that asset, I would pay

14:44

taxes. So talk about how the donor

14:46

device fund lets me avoid that. Yeah,

14:48

and we can use a simple example.

14:51

I think when people think about donating

14:53

stocks, they think of high flyers. Maybe

14:55

you were lucky enough to have. invested

14:57

in Vidia years ago and all of

14:59

a sudden it's a multi trillion dollar

15:02

company. But the truth is it works

15:04

with any investment that you've held more

15:06

than a year. Like let's say you

15:08

bought a Vanguard total stock market fund

15:10

more than 10 years ago. That fund

15:12

is up a lot. The stock market

15:15

is up a lot in the last

15:17

decade. And you're right. If you sell

15:19

that ETF, you're going to pay capital

15:21

gain taxes. Federal in some cases state

15:23

and even local. But when you donate.

15:26

that ETF or mutual fund, you get

15:28

two great tax advantages and one. The

15:30

first is you get that charitable tax

15:32

deduction for the full market value of

15:34

the investment, that current price. And so

15:36

whatever that mutual fund or ETF is

15:39

worth at this point, you get to

15:41

deduct that and you can deduct when

15:43

you donate investments up to 30% of

15:45

your adjusted gross income. It is one

15:47

of the largest and most generous tax

15:50

deductions in the tax code. And I

15:52

don't need to remind you that income

15:54

tax rates tend to be the higher

15:56

rates. But the second tax benefit is

15:58

when you donate that investment. you never

16:00

pay the capital gains taxes. So if

16:03

you had sold the investment and then

16:05

donated cash to the charity, well, you

16:07

would have less cash to give because

16:09

some of that money would go to

16:11

taxes. When you actually donate the investment

16:14

without selling it, all of that money

16:16

can go to the charity. And since

16:18

that charity itself is a non-profit, they

16:20

get to keep all the money as

16:22

well to use for their cause for

16:24

their organization. And so it's one of

16:27

those rare win-wins in a tax code

16:29

where you can be smarter about your

16:31

taxes. but also get more money to

16:33

the organizations and causes you support. So

16:35

if I donate $10,000 worth of shares

16:38

of my ETF to Daffey, the charity

16:40

will get the full $10,000, I get

16:42

the full tax break of the $10,000,

16:44

and I didn't pay the 20% capital

16:46

gains tax on that 10 grand. I

16:48

didn't have to pay $2,000 in taxes.

16:51

Oh, that's exactly right. And better yet,

16:53

of course, by using a donor advice

16:55

fund, maybe you want to give that

16:57

$10 thousand dollars to one charity. charity.

16:59

Maybe you want to set up a

17:02

recurring donation, where you give them a

17:04

thousand dollars every year, and because that

17:06

money is invested, you have that money

17:08

to give, maybe you want to split

17:10

it amongst multiple charities. But saving money

17:12

on those taxes when you put the

17:15

investment in is really the big win,

17:17

especially if you care about getting more

17:19

money to the charities you support. Let's

17:21

talk about another example where I think

17:23

this is a huge opportunity for individuals.

17:26

Sometimes people get a wind fall. they

17:28

get a big block of money that

17:30

is unusual for that. You know, we

17:32

all get our salaries on an annual

17:34

basis, but sometimes a fear, for example,

17:36

a business owner and you've sold the

17:39

company, or you're a senior executive of

17:41

a company that got sold and your

17:43

stock options just came to, or you

17:45

just got some kind of windfall of

17:47

some sort, and we're talking, it might

17:50

be hundreds of thousands of dollars, even

17:52

millions, and it's a one-time event. That's

17:54

ordinary income, in most cases, for most

17:56

people. Ordinary income or capital gains income,

17:58

you're going to have to pay taxes

18:00

on that one time of... But the

18:03

donor advice fund can really help you

18:05

deal with that, can it? That's right.

18:07

And that's actually an increasingly common occurrence,

18:09

right? More and more of us have

18:11

variable income. We have good years and

18:14

not so good years. But for a

18:16

lot of people, they discover the donor

18:18

advice fund when they have one of

18:20

those windfall events. A large amount comes

18:22

in. Even for myself, I learned about

18:24

the donor advice fund years and years

18:27

ago. I was an executive at a

18:29

company called LinkedIn, which most people know,

18:31

but went public in 2011. and all

18:33

that hard work and all that stocks

18:35

suddenly was liquid and you had potentially

18:38

a very big tax bill. And so

18:40

it turns out the donor advice fund

18:42

solves this problem because in the years

18:44

where you have that big windfall, well

18:46

guess what? Your tax rates are also

18:48

higher because we have a progressive tax

18:51

system. You hit those highest rates when

18:53

you have the most money coming in.

18:55

And so the advantage is of putting

18:57

money aside for charity in the same

18:59

tax year where you have that windfall

19:02

are phenomenal. But most people aren't prepared

19:04

to make that decision right away. What

19:06

if that windfall came in November or

19:08

December? Even if it came earlier in

19:10

the year, figuring out what to do

19:12

with that sum of money or what

19:15

organizations should get it is a hard

19:17

problem. And the donor advised fund is

19:19

perfect for this situation, because you can

19:21

take the right of money to control

19:23

your tax bill, figure out how much

19:26

you want to give to charity over

19:28

time, you can put aside multiple years

19:30

worth of giving. Put it in the

19:32

donor advice fund, you get that charitable

19:34

tax deduction that year, and then money

19:37

is invested tax-free. So you have the

19:39

time to figure out which organizations you

19:41

want to support, and for many people

19:43

they will use that windfall through their

19:45

lifetime to support organizations they care about.

19:47

But yes, windfall situations, actually many of

19:50

the members of Daffey just have variable

19:52

income. Right, we have airline pilots, real

19:54

estate agents, certainly people and technology would

19:56

get paid in stock options. Some years

19:58

the market is better than others, and

20:01

the donor advice fund lets them smooth

20:03

out. how they put money aside for

20:05

charity so that they take advantage of

20:07

that charitable tax deduction when it's most

20:09

valuable to them, but then they can

20:11

also support their giving for years or

20:14

even in some case decades. So for

20:16

those who are not familiar with donor

20:18

advised funds where this is kind of

20:20

new and interesting information, they may be

20:22

wondering, gee, this almost sounds too good

20:25

to be true, this can't be legit,

20:27

there cannot be very many people doing

20:29

this, but in fact there are an

20:31

awful lot, how many people have... engaged

20:33

with donor advised funds. Yeah, so it's

20:35

really one of the fastest growing categories,

20:38

certainly in tax-admanaged accounts. There's about a

20:40

quarter of a trillion dollars already in

20:42

donor advised funds, more than two million

20:44

accounts in the US alone. And it

20:46

keeps growing year after year as more

20:49

and more people discover the donor advised

20:51

fund. I mean, unfortunately, there's a good

20:53

reason why people haven't heard of this.

20:55

The truth is that you don't have

20:57

a high quality financial advisor. or accountant,

20:59

you may not have had anyone recommend

21:02

this to you. And unfortunately, the business

21:04

model of the existing donor advised funds

21:06

tends to skew them to focus on

21:08

really the extremely wealthy, right? And it's

21:10

just the way that they make their

21:13

money, etc. I think that's one of

21:15

the reasons you created Daffey and what

21:17

makes Daffey different elaborate on that. Yeah,

21:19

that's right. It's part of the motivation

21:21

to do Daffey. I have a longstanding

21:23

history in technology. with a real passion

21:26

of using technology to bring real solutions

21:28

to people to kind of use the

21:30

frontiers to bring things to people to

21:32

solve old problems in new ways. And

21:34

I've done that, you know, in FinTech,

21:37

in financial services, the last 10 to

21:39

15 years, we've seen so much innovation

21:41

in different products that help people save

21:43

better, spend better, invest better. But why

21:45

not giving? Right. Giving is such an

21:47

important thing. You know, the estimates are

21:50

that 50 to 60 million Americans give

21:52

to charity to charity every year. And

21:54

yet, this donor advice from this wonderful,

21:56

quite infal product has been locked up

21:58

kind of in the very... high end

22:01

product used regularly by the wealthy. The

22:03

idea behind Daphie, the donor advised fund

22:05

for you, is that we could use

22:07

technology to make this simple and easy

22:09

and accessible for all of those

22:12

Americans who care about giving on a

22:14

regular basis. But yeah, so it's been

22:16

growing rapidly and I think it's because when

22:18

people hear about it, they go, this can't

22:20

be true, this is too good. And I will

22:22

say that there are some things people need

22:25

to think about, right? This is an account

22:27

for a purpose. It wouldn't make sense

22:29

to put money aside in a donor-advised

22:31

fund if you don't intend to give

22:33

money to charity, because once you put

22:35

it in a donor-advised fund, that money is

22:37

earmarked. In fact, you can't use it for

22:39

anything else. That's the price you pay for

22:41

that tax benefit. But if you rarely

22:43

give to charity, right, if you belong to

22:46

a church or synagogue, if you give money

22:48

to your kids' school, an alma mater, or

22:50

some national causes, it turns out when most

22:52

of us look at our spending for a given

22:54

year you discover you discover you actually

22:56

did, you actually did. make donations

22:58

to charity and maybe you didn't

23:00

take the tax deduction, maybe you

23:02

didn't think about it, but it turns

23:05

out the donor advice fund is a

23:07

great way to take this important part of

23:09

people's financial lives and do it

23:11

in a more efficient manner. So talk about

23:13

the economics, how big, how small

23:16

are the accounts that you've seen people

23:18

open at Daffey? Yeah, it comes in all

23:20

sizes. It turns out that giving is

23:22

fairly universal. We have accounts at Daffey

23:25

that are as large as eight figures.

23:27

tens of millions of dollars, but it

23:29

only costs. The minimum that you need

23:31

to contribute to open a donor advisement

23:33

at DAFI is just $10. We have

23:36

a lot of members who put aside

23:38

$10 a week, $25 a month. Most of

23:40

our members put aside a few thousand

23:42

dollars every year for three to

23:44

five charities that they support

23:46

regularly. But it's really an incredible

23:48

variety. I mean, I can tell you

23:51

last year in 2023, our largest stock

23:53

contribution to DAFI was over

23:55

12 million dollars. But our media,

23:58

the average stock contribution, was

24:00

about $6,000. In crypto, it was very

24:02

similar. Our largest crypto contribution was about

24:04

$5 million worth in US dollars. But

24:06

our median crypto contribution was just $1,000.

24:09

And so we really see all kinds.

24:11

I think giving is something very personal,

24:13

but people from all walks of life

24:15

seem to have been raised, at least

24:18

many of them, to believe that giving

24:20

back is part of the way they

24:22

want to live their lives. And the

24:24

donor advice fund just makes it easy

24:26

to do so. And talk about how

24:29

much all this costs. Oh, well, that's

24:31

actually the best part. I mean, you're

24:33

giving me the easy ones here. The

24:35

whole idea behind the donor advice line

24:38

and rethinking for Daphie what it would

24:40

mean to support everyone who gives the

24:42

charity is we've tried to make our

24:44

pricing really approachable. And so actually we're

24:46

free to get started under $100. We

24:49

charge $3 a month for most of

24:51

our members. So like a lot of

24:53

the non-profits that people give to, Daphie

24:55

is structured as a membership as a

24:57

membership. based nonprofit. And so for $3

25:00

a month you get the basic donor

25:02

advised fund. If you want to include

25:04

your family on the plan, we support

25:06

up to 24 members. You can include

25:09

your siblings, parents, grandparents, or your kids

25:11

and grandkids or anyone you want to

25:13

give with. That's $5 a month. And

25:15

then at the high end, if you

25:17

want to put aside an unlimited amount

25:20

of stock, crypto, other types of investments,

25:22

if you want to customize your portfolio,

25:24

we charge $20 a month. And so

25:26

this may sound simple, but most of

25:29

the industry, most of the donor advice

25:31

funds on the market have very high

25:33

minimums and very high fees. Even one

25:35

of my favorite companies. Vanguard is one

25:37

of my favorite organizations. But Vanguard Charitable

25:40

has a minimum of $25,000 on their

25:42

donor advice fund and a fee of

25:44

0.6% 60 basis points. Which is kind

25:46

of shocking. There's almost nothing at Vanguard

25:49

that costs that much, but you can

25:51

estimate you know a hundred thousand dollar

25:53

account at Vanguard Charitable or Fidelity or

25:55

Schwab will end up costing about $600

25:57

a year. And Daphie is much, much

26:00

less expensive. We try to make it

26:02

very easy for people to get started,

26:04

because our goal is to help people

26:06

give. Well, it's really very exciting what

26:09

you're putting together. The goal is to

26:11

get as many people to donate as

26:13

possible, to get as many people to

26:15

donate as much as possible. And the

26:17

donor advice fund is a technological solution.

26:20

that I really think facilitates the ability

26:22

for people to be generous and make

26:24

it easy to be generous, make it

26:26

easy for tax record keeping and reporting,

26:29

make it easy to avoid the capital

26:31

gains tax, make it easy for you

26:33

to determine who you're going to give

26:35

to, when you're going to give, how

26:37

often you're going to give, just flexibility

26:40

is the key word in this whole

26:42

conversation. And so if you're unfamiliar with

26:44

donor advice funds, I encourage you to,

26:46

if you have an account at Schwab

26:49

or fidelity. talk to them, even if

26:51

you do, I think you should compare

26:53

them to what Daffey is offering. The

26:55

website is Daffey.org. We've got a link

26:57

to it in the show notes, so

27:00

you can check them out really easily.

27:02

And this is the time of year

27:04

to be doing this kind of year

27:06

and gift giving, so I encourage you

27:08

to do that this very month. Adam

27:11

Nash, the CEO and founder of Daffey.org,

27:13

thanks so much for being with us

27:15

on the program today. I'm

27:27

glad you're with me here on

27:29

The Truth About Your Future. If

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