[A version of this piece appeared in the Chronicle of Philanthropy on July 13, 2017.]
Here’s the world’s simplest math problem.
My wife Pat and I often meet a pair of friends for a movie. If there’s a risk that the show will sell out, I run over to the theater ahead of time and buy all four tickets in advance. When our friends arrive, we hand them their tickets and they pay us back what they owe us.
So the question is this: how many tickets did the movie theater sell?
Four, of course.
But in the parallel universe of donor-advised funds (DAFs), where double-counting comes as naturally as breathing and dissembling, the answer would be six.
Let me try to explain the inexplicable. Continue reading