Donor Advised Funds
Your “charitable checking account” for creating FOREVER VALUE
What is a Donor Advised Fund (DAF)?
A Donor Advised Fund is a tax-advantaged, convenient vehicle for donating to all the organizations you already love. The donor receives the full tax deduction in the year that the contribution is made to their DAF, but the donor then can take their time in deciding when and to whom they would like to grant this money.
A DAF may advise grants for up to two lifetimes, creating a legacy of philanthropy within a family. The investments will grow tax-free for future grants to charitable causes. In the case of appreciated assets, a Donor Advised Fund can assist you in turning capital gains into charitable gains!
Why a DAF with the Catholic Community Foundation?
We know you have choices in the administration of a Donor Advised Fund. Our core value is in providing donors the opportunity to advise grants in their key areas of interest. Commercial funds lack our personal touch and focus on a charitable mission; all fees on our DAFs further the Foundation’s mission and the impact that we have on our local community.
As an active grantmaker to the local Catholic Community, we are well equipped to advise you about effective programs and organizations that would benefit from your support. Donor Advised Funds with the Foundation can grant to any qualified 501(c)3 as long as the charitable organization engages only in work that aligns with Catholic social teachings. All of the Foundation’s funds are managed under USCCB guidelines for socially responsible investing.
Bunching & DAFs: Great for Charity, Great for your Taxes
Bunching your charitable donations into a Donor Advised Fund is a win-win for your taxes and for the charities you donate to regularly. Read our article with a 4-year comparison to learn why!
Donor Advised Funds at a Glance
Important Forms
Investment Policy
Investment Pools
Donor Advised Fund Agreement
Endowment Agreement
Family Endowment Agreement
Non-Endowed Fund Agreement
Related Links
Professional Advisors
Donor Advised Funds
Endowments
Grants
Investment Management
Legacy Planning
Donor Advised Fund vs. Private Foundation
| Donor Advised Fund | Private Foundation | |
| Cost | Annual fee of 1% | Often requires employing lawyers, accountants and staff, as well as other administrative expenses. |
| Administrative Requirements | The Foundation will establish an individual fund in your name. We manage investing, accounting and state and federal reporting. | An individual 501(c)3 organization must be established and will require filing with the IRS for charitable tax exemption status. Responsible for compliance with federal and state guidelines. |
| Tax Benefits | Charitable deduction of 100% fair market value for most gifts of long term capital gain | Charitable deduction often limited to donor cost. Subject to additional federal taxes that DAFs are not. |
| Flexibility | No annual payout requirement. Grant funds at your own pace, however you choose. | Subject to a 5% annual grant payout. |
| Privacy | Choose whether to gift publicly or anonymously. | No anonymity option. |