Private foundation or DAF for about $2M?

FIREby55 · 1/27/2026

Foundation gives control and a legacy vehicle, plus an excise tax, a 990-PF, and real admin. A DAF gives me anonymity and near-zero admin but less control. For families who have done both — what tipped you?

4 replies

At $2M a DAF wins on cost almost every time. Foundations make sense when you want control, staff, or to pay family members legitimately.
meghan_the_cfo · 1/28/2026
And the 5% annual distribution requirement plus a 990-PF every year. That is a real ongoing chore.
FIRE_at_52 · 1/28/2026
We started with a DAF and told ourselves we would upgrade later. Eight years in, never needed to.
retired_in_2019 · 2/5/2026
foundations are for people who want a building with their name on it, be honest
HODLberto · 2/12/2026