The Master Fund Approach to Legacy Donations
TFS = Traditional Fund Strategy | MFS = Master Fund Strategy
I have developed a novel approach to making legacy donations to charitable organizations—referred to as the Master Fund Strategy—that:
- Has potential long-term financial benefits to the charities.
- Allows donors to control their legacy donations in a convenient and easy-to-implement manner.
- Can be established through an existing Nonprofit Organization (NPO).
- Expands opportunities for more donors because it requires a smaller corpus contribution with lower management costs than creating your own foundation.
- Provides tax savings comparable to other planned giving vehicles.
- Can be implemented during one's lifetime using Donor Advised Funds.
The following two articles have been published in a peer-reviewed journal and describe the approach in detail (or you can just scroll down and learn more about the idea right here):
- "A Novel Approach to Legacy Donations with Long-Term Benefits Supported by Numerical Illustrations", Daniel Solow, Robin Symes, and Natalie Webb, Journal of Philanthropy and Marketing, June 5, 2023. Available online at https://onlinelibrary.wiley.com/doi/10.1002/nvsm.1803
- "A Novel Approach to Legacy Donations with Long-Term Benefits Supported by Mathematical Analysis", Daniel Solow, Robin Symes, and Natalie Webb, Journal of Philanthropy and Marketing, August 8, 2023. Available online at https://onlinelibrary.wiley.com/doi/10.1002/nvsm.1813
Understanding the Master Fund Strategy
Watch the following video to learn about the Master Fund Strategy:
See the Potential Financial Benefits of Using the Master Fund Strategy
By entering your own data in the Legacy Calculator worksheet below, you can see the potential financial benefits of using the Master Fund Strategy when compared to a Traditional Fund Strategy of leaving money in an endowment fund.
Download the LegacyCalculator.
Watch the following video to learn how to use the worksheet:
Daniel Solow
- Deaprtment of Operations
- Weatherhead School of Management
- Case Western Reserve University
- Cleveland, OH 44106
