Is there some kind of bank account transfer of one lump sum or physical cash or something else?
In: Economics
It depends on the amount of money. For a few thousand dollars, they can just write a check like anyone else. For larger amounts, they might choose to transfer assets (stocks, bonds, etc.) to the recipient instead of cash. For truly large amounts, the donation probably takes the form of a series of structured transfers or the creation of a new foundation endowed by the donor. This is because even someone worth billions of dollars doesn’t necessarily have that money just sitting in a bank account. It’s invested in stocks and other financial assets, and they live off the income flow from those investments. Their “donation” is to redirect some of that flow towards the recipient.
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