Donor-Advised Fund: Strategic and Catholic Charitable Giving
A Donor-Advised Fund (DAF) is a charitable giving vehicle that allows donors to contribute funds, receive an immediate tax deduction, and recommend grants to charitable organizations over time. Managed by the Catholic Foundation, a DAF offers flexibility and investment growth while ensuring that grants align with the donor’s faith and values.
In Gaudium et Spes, the Second Vatican Council affirms that “Man is more precious for what he is than for what he has” (GS 35). A DAF allows donors to focus on what truly matters—helping others—while wisely managing their financial gifts.
Advantages of a Donor-Advised Fund for Catholic Donors:
- Flexible Philanthropy – Donors can contribute when financially advantageous while recommending grants at their convenience, echoing the wisdom of Ecclesiastes 11:2: “Give a portion to seven, or even to eight, for you do not know what disaster may happen on earth.”
- Immediate Tax Deduction – Contributions qualify for an immediate tax deduction, even if distributions are made over several years.
- Growth of Charitable Assets – Funds in a DAF are invested prudently, potentially increasing the amount available for future giving.
- Alignment with Catholic Teaching – The Catholic Foundation ensures that DAF investments adhere to Catholic moral and social principles, following the guidance of the USCCB’s socially responsible investing policies.
- Anonymity Option – Donors can choose to remain anonymous when making grants.
- Multi-Generational Giving – Donors can involve their children or grandchildren, fostering a family tradition of faith-based philanthropy. As Pope Benedict XVI stated, “Love of neighbor is a path that leads to the encounter with God.”
Want to create a DAF, complete this Letter of Intent.
Questions? Contact Samantha Donohue, Senior Director of Development, at [email protected] or by phone at 703-778-8600.
