I don’t believe this is necessary. Once money is given to a DAF, it’s a charitable donation in that particular tax year and is no longer owned or considered net worth of the individual. They only “play” it should receive in PL is simply as a charitable contribution in that tax year. This capability already exists in PL. It would be problematic to have a separate account for DAF b/c those assets no longer belong to the person.

I have no comment on Donor Advised Funds being an account type but they should get their own Expense type. Donations into the DAFy from an investment account can be cash but are often appreciated securities. Donations are both tax deductible and non-taxable in terms of capital gain taxes. Charity Expense doesn’t have the non-taxable option.

Perhaps just allowing Donation expenses which funded from a Taxable Investment account to be marked as tax-efficient/exempt from LTCG would suffice.

I would really like this feature, I just learned about DAFs and I’m starting to shift my contributions away from cash to stocks. I would like to model this in PL. I like Greg’s idea above, it’s how I envisioned it to work.

I’d like this as well. I’m about to make a good-sized DAF contribution from a post-tax account, and I’d like to track charitable donations to that DAF over time as well. If we can see what donations do to our plans and taxable income in PL, it helps us plan for philanthropic giving.

A daf is not your money! One you put money in, it is essentially gone from your estate. This enhancement is not worth spending time on.

Lloyd, there’s no debate that funds in a DAF are no longer your money.

The request is to correctly model the tax-advantaged means of contributing appreciated assets to a DAF in ProjectionLab. Currently, donations of assets (e.g. stock) are assumed to be sold, taxable profit realized, and the cash donated, which isn’t how it works IRL.

Are you saying that when you create a charitable expense and have it comes out of your after tax investment account the software does 2 things: 1) correctly records charitable expense and includes them in itemized deductions, and 2) incorrectly records a gain on sale (presuming you have input a cost basis less than FMV for your after-tax investment account)? If that is the case then clearly that is wrong and would be nice to record it correctly.

It’s kind of funny because i just did one yesterday - transferred a stock with low cost basis to a DAF!

Lloyd, if you the Daffy transfer as a charitable expense then it’s being counted as taxable transaction when it’s actually non taxable. This is why we’re saying DAF transfers need to be a specific thing with correct tax treatment.

OK now I understand what you are saying PL does. Cleary it’s not right!!