Hello folks, I'm interested in giving over the long term and I've found some of the research (1) around patient philanthropy convincing. I'm interested in investing some money (say 10% of income) and putting this in something like the things suggested here (2). I've looked a bit at DAFs but the fees look quite high and I wonder if I could assemble something better myself. My donations would be to longtermist causes. Does anyone know of a good guide on setting up a simple long term fund that I could use specifically for donations in the future please? The ideal would be something as simple as EA funds where I can clearly track my donations and keep them separate from everything else. Thanks!
(1) https://philiptrammell.com/research
(2) https://80000hours.org/2015/10/common-investing-mistakes-in-the-effective-altruism-community/
By "quite high," do you mean 0.6% per annum in addition to the mutual-fund expense ratio? That's the fee charged by Vanguard, Fidelity, and Charles Schwab on the first $500k. To me, the benefits a DAF offers seem worth the price:
For people looking to invest millions of dollars, 0.6% would seem excessive. But larger accounts have lower fees. Here the fees for Vanguard's "Select" accounts:
So a $100m account would cost $77,200 in DAF fees, plus the mutual-fund fee. That seems like a steal to me (although high-rollers might prefer something with more-flexible investment options).
The main reason I can think of not to use a DAF is that you think that there's a high chance you'll want to do something with the money other than donate it to a 501(c)(3).