05.13.24

Wealth Managers, Charities Defend Fees From Donor-Advised Funds

by: Richard Rubi

Investment managers and charity organizations are teaming up against a proposal that would penalize certain payments from charitable funds to wealth advisors who steer the investments. The fight puts a spotlight on donor-advised funds (DAFs), contributions to which topped $85 billion in 2022, more than double the 2018 figure. The Treasury Department sees the fees paid to wealth advisors as causing conflicts of interest and says they can provide incentives to keep money from ultimately getting to charities. While financial giants such as Fidelity Investments, Charles Schwab and Vanguard Group are tied to the largest DAFs, the funds are also scattered throughout community-based groups that have operated for many decades.

Read the full article on The Wall Street Journal