A liquidity event is often a momentous occasion—one that is exciting and worth celebrating. However, navigating the complexities that stem from a liquidity event can be overwhelming. Whether you are selling your company, receiving a windfall from an investment, or benefiting from some other significant financial event, making thoughtful and strategic decisions as you plan is crucial.
A Notre Dame Donor Advised Fund offers a versatile and effective solution for managing the financial implications of a liquidity event. It provides an avenue for tax optimization, strategic philanthropic planning, and the opportunity to align personal values with charitable giving. As you navigate this complex landscape, leveraging a DAF can empower you to make a meaningful and lasting impact on the causes you hold dear. By utilizing a Notre Dame DAF after a liquidity event, you can make well-informed decisions that align your financial success with your philanthropic aspirations.
Why you should consider a Notre Dame DAF after a liquidity event:
Access to Leverage the Power of Notre Dame’s Endowment: A Notre Dame DAF provides a unique opportunity for investment in the Notre Dame Endowment—which has consistently been among the best-performing endowments in higher education, producing annualized average returns of just over 10% over the last 20 years. The University’s program is offered without the assessment of any direct administrative or investment management fees and provides an avenue for tax-free growth within the DAF. By leveraging the power of the Notre Dame Endowment, you have the opportunity to amplify the impact of your giving.
Beneficial Tax Advantages: When a liquidity event occurs, taxes are often a major concern. Donor advised funds offer a strategic solution. By contributing assets to a DAF, you will receive an immediate income tax charitable deduction, potentially reducing your overall tax liability as a result of the liquidity event. This allows you to retain more of your wealth and have a lasting impact on charitable causes that matter to you.
Control and Convenience: A liquidity event might leave you wondering how to effectively give back to the charitable causes you're passionate about. One of the most appealing aspects of a DAF is the control it offers; a DAF provides the flexibility to make charitable donations over time, allowing you to carefully plan your philanthropic journey by recommending grants out of your DAF to public charities of your choice in the following years. Plus, with Notre Dame’s DAF platform, you receive top-of-the-line concierge service and a streamlined and simple online portal to plan and manage your philanthropy.
Authors
Gift Planning Program Director