If you’re investing to donate, consider using a tax-deductible entity
If you ultimately want to give, you can get ~1% extra per year by using a tax-deductible entity.
In the UK, it’s a substantial effort to set up a charity, but you have a lot of freedom with respect to how you invest, so you can also implement relatively advanced strategies.
In Switzerland, the effort of setting up a charity is very small, but you do face some limitations on investment options.
It’s worth mentioning that this is generally a bad idea in the US tax regime (despite being trivially easy), because the options for handling capital gains and losses differently mean you can sometimes do better with pre-donation investments than with post-donation investments.
(I’m a finance professional, but no one’s tax or investment advisor, much less your tax or investment advisor.)
I’m being unnecessarily oblique in the above comment, for which I’m sorry.
What I mean is, in a taxable account, you have the option to donate winners and harvest capital losses on losers. In a post-donation investment vehicle like a DAF, you don’t have that optionality. (Compared to a taxable account, your treatment on winners also comes out to no capital gains tax, but your treatment on losers is worse, with no harvesting losses.)
If you’re investing to donate, consider using a tax-deductible entity
If you ultimately want to give, you can get ~1% extra per year by using a tax-deductible entity.
In the UK, it’s a substantial effort to set up a charity, but you have a lot of freedom with respect to how you invest, so you can also implement relatively advanced strategies.
In Switzerland, the effort of setting up a charity is very small, but you do face some limitations on investment options.
I haven’t looked into other jurisdictions.
It’s worth mentioning that this is generally a bad idea in the US tax regime (despite being trivially easy), because the options for handling capital gains and losses differently mean you can sometimes do better with pre-donation investments than with post-donation investments.
(I’m a finance professional, but no one’s tax or investment advisor, much less your tax or investment advisor.)
Can you go into more detail about this, or link to an article?
I’m being unnecessarily oblique in the above comment, for which I’m sorry.
What I mean is, in a taxable account, you have the option to donate winners and harvest capital losses on losers. In a post-donation investment vehicle like a DAF, you don’t have that optionality. (Compared to a taxable account, your treatment on winners also comes out to no capital gains tax, but your treatment on losers is worse, with no harvesting losses.)
(not tax or investment advice)