Looking at PCF’s impact from a professional lens, Don Hall, Owner and Chief Investment Officer of Hall Capital Management, believes the donor advised fund (DAF) options at PCF offer his clients a way to maximize charitable impact, while minimizing income taxes. If a donor has an abnormally high additional taxable income or capital gain in a given year, but does not wish to increase their charitable giving more than normal, the taxable income or gain can be offset by a gift to a DAF. The DAF can be tapped at any time in the future to supplement charitable giving when income is lower and perhaps not sufficient to continue normal charitable giving. Funds can be set up as charitable checkbooks or invested for a longer-term giving horizon.
Personally, Don has established a DAF at PCF and often recommends that his clients take advantage of this effective way of giving to organizations of their choice. For example, one of Don’s clients had a low-cost stock in a company that was being acquired. Faced with a large capital gain, the client donated some of his stock to a donor advised fund at PCF, enabling him to take a deduction in the year of his increased income. While this gift saved him substantial taxes, Don’s client appreciated how easy it was for him to direct gifts to charities, with PCF taking care of the gifts anonymously at his request. PCF facilitates Don’s and his clients’ charitable contributions in a way that maximizes savings and simplifies record keeping at tax time.
This donor advised investment fund allows the donor to support a wide array of charities across the U.S.