Making the Case for a Dartmouth Donor Advised Fund

Pictured above: Hadley Mullin ’96 P’27 and Dartmouth Founders Project member Dan Kalafatas ’96 P’27

Why was a DDAF a good choice for your family? 

Hadley and I give out of our love of Dartmouth, gratitude for the springboard it provided to us, and strong support for College leadership; and we knew we would be philanthropic to Dartmouth in the years and decades ahead. I’d say there are two main reasons a DDAF was a good choice for our family. First, it enables up-front tax-deductible philanthropy in support of philanthropic goals over time. Second, our DDAF is invested alongside the Dartmouth endowment. As a nontaxable investor with an excellent track record with a 10.7 percent, 10-year-annualized return and no set-up or management fees, Dartmouth is in a good position to grow our philanthropy over time.  

It’s also worth noting you can use both liquid as well as illiquid assets, such as company stock or even artwork, to fund a DDAF. Regardless, funding with appreciated assets of any kind before they are liquidated provides the tax-deductible benefit of the value of the donation, plus avoids capital gains taxation on the appreciated assets, providing an attractive bang for the buck that then appreciates over time, as well. 

How long ago did you establish your DDAF, and have things gone as you intended? 

We funded the DDAF in 2022 and it has gone excellently. We are obligated to give 5% of the balance away each year with 50% of those disbursements to Dartmouth, which aligns with our philanthropic goals. We receive annual statements about our account value and performance and love it each year when the investment return exceeds our annual gift. 

What was your experience working with the Gift Planning Office? Were they able to answer your questions? 

It was super efficient both in the setup and in ongoing management. They are knowledgeable, responsive, and easy to work with. 

And we’ve been able to fund some of our favorite things at Dartmouth, including a big priority for us: educational access for the incredibly talented students seeking to take advantage of a Dartmouth education like we were so lucky to take advantage of, ourselves. 

You’ve said that a donor advised fund has both a long-term and an immediate impact. What does that mean? 

The long-term effect is that when you establish a donor advised fund, you are supporting philanthropy over a long period of time. And short term, you get an immediate tax deduction the moment you create that fund. That’s an important thing to understand. Because if you're only making donations out of your taxable estate over time, you don't get that kind of lump sum benefit.

You are invited to speak with the Dartmouth Gift Planning team to learn more about Dartmouth Donor Advised Funds at gift.planning@dartmouth.edu. 

Please note: Dartmouth’s Gift Planning Office does not provide tax or legal advice. Consult your attorney or tax advisor prior to entering into any gift planning arrangement.