THE FOUNDATION FOR THE CATHOLIC DIOCESE OF ARLINGTON

    COMPARATIVE REASONS FOR OPENING

     a Donor Advised Fund within The Foundation for the Catholic Diocese of Arlington

        

                   Topic                 CDA-DAF   vs    Private Family

    Organization

    Established 2011

    Not yet established

    FocusEntities aligned with principles of the Roman Catholic Church Not established
    Tax exempt § 501(c)(3) status Not yet established
    Recommended size $10,000 minimum$2+ million to justify costs 
    Annual costsFee scheduleCan be costly
    Grant making Guidance

    Staff available as consultants regarding charitable causes

    Little to no assistance available 
    Self-Dealing RulesDo not applyStrict regulations

    % payout rule

    Not subject to

    Typically 5% of assets

    Excise Tax on investment income Do not pay May be subject to tax
    Tax Deductibility for Donors   Maximum under law* Uncertain; provisional status if approved*
    Mechanism for Receiving Gifts   Established mechanisms to handle gifts of real estate, securities & cash Need mechanisms for receiving and managing of gifts
    Sophisticated Gift Instruments (Lead Trust, Gift Annuity, Unitrusts, etc.) In place Must create
    Staffing and Office Space In place Need to obtain
    Accounting Independent CPA audit annually Must employ
    Tax Return N/A (Foundation Annual Report) Must prepare
    Public Report Annual report to public May be required
    Director and Officer Liability In place Costly & difficult to obtain
    Liability Insurance In place up to $11 million Needed
    Investment of Assets Professional Investment Committee Need to obtain
    *Consult a tax advisor to confirm maximum charitable tax deduction available for donations to foundations.  Most recently, tax deduction for Cash donation to Arlington Catholic Diocese DAFs can be up to 50% of AGI while Private Foundation donations are deductible only up to 30% of AGI.  Tax deduction for Appreciated Securities donations to Arlington Catholic Diocese DAFs are up to 30% of AGI while Private Foundation deduction is only up to 20% of AGI.