Donor Advised Funds Simplify Giving, Make a Lasting Impact on Causes that Count

10-01-2018News & Articles

The Catholic Community Foundation provides an opportunity for community members to simplify their charitable giving while making a lasting, positive impression in the community through donor advised funds.

It allows the donor to make a gift, in stocks or cash, that will fund the Donor Advised Fund. The fund’s assets grow tax free and the donor is able to provide recommendations on grants to be made from the fund through their online portal — all without any fees.

For Jerry and Kathleen Morgan, establishing their Donor Advised Fund six years ago has provided a way to give consistently to the charities of their choice regardless of variations in their income.

“When you tithe, if all of a sudden you have a bunch of money one year and less money the next year, that ebb and flow can be difficult because if you give a charity a bunch of money one year they're likely going to expect it the next year,” said the Morgans. “The benefit of the Donor Advised Fund is if you have a very good year financially and you share your funds with the DAF, you can then continue to give out of the DAF to your charities of choice at a normal pace.”

These funds also establish a flexible way to give and are more tax and cost efficient than donating through a private foundation. Donors receive charitable income tax deduction during the year of their gift.

The Morgans, who give in a variety of ways, including company shares, were especially pleased by the tax benefits they received because of their Donor Advised Fund, calling them “shockingly beneficial.”

“We would give thumbs up to the CCF,” the Morgans said. “They do a very good job. They do an excellent job of communication. They do an excellent job in the follow up. I really can't think of a time where I haven't been pleased with their responsiveness.”

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