The Door to the Courthouse Finally Closed Shut for DAF Donors?The Door to the Courthouse Finally Closed Shut for DAF Donors?

In Pinkert v. Schwab Charitable Fund,¹ Philip Pinkert sued the Schwab Charitable Fund (the Fund) and the Charles Schwab Corporation (the Corporation), alleging the Fund breached its fiduciary duty by making imprudent investments with his contributions to a donor-advised fund (DAF) and charging him grossly excessive administrative fees. This resulted in a diminished performance of the DAF, reducing Philip’s capacity to fulfill his philanthropic aims. Given the very close business relationship between the Fund and the Corporation, Philip believed the Fund wasn’t negotiating lower rates for custodial and brokerage fees to be paid to the Corporation. Nor was the Fund providing access to funds with lower fees that should have been available t...