Wealthyist E17 | Donor Advised Funds & Estate Planning: An Interview With Ryan Klund (Pt 2)
In this episode of "Wealthyist," host Brian Lamborn, Senior Wealth Strategist at Annex Wealth Management, continues his discussion with Ryan Klund from the National Christian Foundation (NCF) about charitable giving, focusing on donor-advised funds (DAFs) and their role in wealth planning.
The conversation contrasts DAFs with private foundations, particularly for successful business owners who value control. Ryan explains that private foundations offer significant control but come with administrative burdens and IRS rules, sometimes becoming overwhelming for heirs after the founder’s passing, leading some to roll assets into DAFs for simplicity. DAFs, as public charities, allow donors to direct grants while relinquishing legal ownership to NCF, balancing control with tax benefits.
The conversation contrasts DAFs with private foundations, particularly for successful business owners who value control. Ryan explains that private foundations offer significant control but come with administrative burdens and IRS rules, sometimes becoming overwhelming for heirs after the founder’s passing, leading some to roll assets into DAFs for simplicity. DAFs, as public charities, allow donors to direct grants while relinquishing legal ownership to NCF, balancing control with tax benefits.
Ryan highlights that many NCF clients, rooted in Christian values, view themselves as stewards of wealth, which tempers their need for absolute control. Beyond DAFs, NCF offers tools like complex asset giving (e.g., real estate, business interests) and impact investing, where charitable capital is invested in for-profit companies aligned with NCF’s mission, with returns recycled into the DAF for further granting. For those new to philanthropy, Ryan suggests starting by identifying passions and getting involved, noting that DAFs help organize giving—streamlining tax receipts for donors supporting multiple nonprofits (averaging 12–15 annually).
The discussion emphasizes generational wealth transfer, with DAFs serving as a tool to teach children about giving. Examples include grandparents involving grandkids in choosing charities or parents making heirs equal participants in DAF decisions to instill values. Ryan also underscores DAFs in estate planning, offering flexibility to adjust beneficiaries (e.g., updating charities without legal revisions) and reduce estate taxes by excluding charitable gifts.
Creative strategies include naming a DAF as an “additional child” to split inheritances with charity or setting up post-death grants to sustain giving for years. The episode wraps up with Ryan stressing the importance of modeling generosity to leave a legacy of values, not just wealth, and Brian thanking him for the insights. The podcast notes its content is educational, not formal advice, urging listeners to consult professionals.
Creative strategies include naming a DAF as an “additional child” to split inheritances with charity or setting up post-death grants to sustain giving for years. The episode wraps up with Ryan stressing the importance of modeling generosity to leave a legacy of values, not just wealth, and Brian thanking him for the insights. The podcast notes its content is educational, not formal advice, urging listeners to consult professionals.
