Donor Advised Funds and their End of Year Tax Advantage

What is a Donor Advised Fund?

This is a donor-designated fund that gives you flexibility in your charitable giving. Similar to a checking account, but for charitable purposes. After you put funds into the account you can designate any portion to the charity of your choice, and we take care of the rest.

 

Are donor advised funds costly?

Here at the Catholic Community Foundation we keep donor advised funds simple. There are no load fees, no distribution fees, and no minimums in funding or in the support you give to an individual charity.  Simply put there are no fees at all with our Donor advised funds.

 

How long does it take to set up?

We can set up a donor advised fund the same day with quick and simple paperwork. Simply contact your local Catholic Community Foundation staff member here.

 

Can I only fund a Donor Advised Fund with cash?

No, you can fund a Donor Advised Fund with a variety of non-cash assets. Many people use stock, mutual funds, or other appreciated assets as a way to maximize their charitable deduction.

 

Why at the end of the year?

When you deposit funds, or assets, into your donor advised fund you receive all possible charitable gift deduction right away. This allows you to immediately receive all the tax deductions you would like before the end of year. You then have time to plan our your giving when you are not pressured by the end of the year IRS deadline. This allows you to look at your tax situation at the end of every year, and still make charitable gifts throughout the entire year.

 

We asked some of our donors why they liked to use our donor advised funds, here what they had to say:

“They are simple and easy to use. Plus there is no charge and I have someone else take care of the work”.

“It allows me to put much of my giving on auto payment and makes my charitable receipts easy”.

“I am able to give stock when the market is best for me, while giving gifts to multiple charities throughout the year”.

 

Click here to connect with your local Catholic Community Foundation staff member and learn more about Donor Advised Funds