For 26 years, Chris and Paul were colleagues at Shartsis Friese, a San Francisco law firm. Both supported the San Francisco-Marin Food Bank for decades. Both volunteered. Both donated year after year. Then Chris told Paul about a tool that would make their giving go even further: donor-advised funds (DAFs).
“Somehow I missed donor-advised funds all of that time,” Paul says. “And [when I heard about them] I was like, ‘Really, that’s so great and so simple.'”
How DAFs Work
The concept really is that simple. A donor-advised fund (DAF) is a charitable giving account through a financial institution. You contribute cash, appreciated stock, or other assets and get a tax deduction for the full market value right away. The money is invested and can grow over time, though returns depend on your investment choices and market conditions. Then you recommend grants to any eligible charity, whenever you want and in whatever amount makes sense. Your regular causes, a disaster relief fund halfway across the world, all from the same account.
When the Maui wildfires hit, Paul didn’t have to think twice. “That really got me because I love that island,” he says. “And so I just went on to my donor advice fund and brought up Maui Food Bank and sent them some money.” Within a week or two, the Maui Food Bank had a check.
Chris put it in real-world terms.
“If you’ve got Apple stock you bought 20 years ago and now it’s worth 10 times as much, you can put the stock in the DAF, get the tax benefit of having made the charitable contribution at that time, and avoid capital gains taxes,” he explains. “Then you direct grants to nonprofits whenever you want.”
Paul wants others to know it’s not as daunting as it sounds. “If it sounds complicated, give it a try once,” he says. “And you’ll realize it’s really not that difficult.”
And he’s found an unexpected benefit to DAF giving: “Since it’s easier, I [donate] a little bit more than I would otherwise.”
More Than a Check
If you ask Chris and Paul why they commit money and time to the Food Bank’s mission, it’s not about the tax benefit.
“Food is fundamental,” Chris says. “You can’t have a life without it.”
There’s also a human element.
“What I love about [the Food Bank] is not only is it a great organization, but it’s the rare organization that you can support financially and also be a regular volunteer,” he continues. “You become a regular and you know everybody, which is much more fun to do.”
During the pandemic, that’s exactly what he did. When a Catholic Charities pantry serving seniors at Temple Methodist Church lost its regular volunteers (many of whom were older adults staying home to protect their health), Chris got a call asking if he could volunteer at the pantry. He said yes, and kept showing up every Thursday for three years. He eventually brought Paul along.
For Paul, showing up runs in the family. In his 20s, he and his four siblings made a pact: stop exchanging gifts and donate to charity instead. That habit never left.
“I’ve certainly spent even more time volunteering than I had before,” he says. “That just feels like it’s necessary for people to do.”
Pass It On
Chris puts it simply: “Every organization ought to have the DAF on their radar.”
For Chris and Paul, the DAF is just the latest way to show up for a cause they’ve believed in for decades — and a way to make every dollar go even further.
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