Wealthyist E16 | Donor Advised Funds: An Interview With Ryan Klund (PT 1)

Wealthyist

In this episode of "Wealthyist," host Brian Lamborne interviews Ryan Klund from the National Christian Foundation (NCF). The two met at an Exit Planning Institute event and discovered overlapping interests between Annex Wealth Management, where Brian works, and NCF. Ryan introduces NCF as the largest Christian donor-advised fund, designed to assist Christians serious about generosity with creative giving solutions, though it also serves some non-Christian clients. He describes a donor-advised fund as a hybrid between a charitable checking account and a cost-effective alternative to a private foundation, likening it to a "container ship" where families can manage charitable giving efficiently.

Ryan explains that NCF focuses on Christian values, offering discernment based on biblical principles, such as avoiding grants to organizations whose missions conflict with the Bible, though 99.9% of grant requests are approved. This appeals to clients—Christian or otherwise—who want to avoid supporting certain causes (e.g., tobacco or firearms) while pursuing philanthropy. The discussion touches on why wealthy individuals should consider generosity, with Ryan citing biblical motivations (e.g., John 3:16) and the broader desire to leave a lasting legacy beyond material wealth, a theme historically seen in families like the Rockefellers.

The podcast also explores advanced giving strategies, such as donating a percentage of a business to a donor-advised fund before a sale to maximize tax benefits and create a charitable cash flow. Ryan notes this is growing in popularity, especially as the "great wealth transfer" from boomers to millennials looms, with business ownership being a key asset class in transition. NCF facilitates complex gifts like real estate or closely held business interests, supported by a team of lawyers, offering donors flexibility and control over future distributions—unlike direct gifts to charities.

The episode concludes with a teaser for a follow-up discussion, emphasizing tax-efficient strategies like front-loading multiple years of giving into a donor-advised fund. The podcast aims to educate listeners on wealth strategies, blending financial planning with philanthropy, while noting that the content is for informational purposes and not formal advice.