Donor Advised Funds
Another way to remember the Church (diocese or parish) with one’s gifts of assets.
How do they work?
- Donors establish an account with the Catholic Foundation by opening an endowed or provisional donor advised fund (DAF).
- Periodically the donor(s) contact the Catholic Foundation and recommend that a grant be made. With an endowed DAF, only earnings may be distributed on an annual basis. The principal (or corpus) can never be distributed. With a provisional DAF, both earnings and principal may be distributed and this may be done on up to a quarterly basis.
- A minimum of 50% of each grant from donor advised funds must be given to agencies of the Diocese of Rockford. The remainder of each grant, 50% or less, may be given to other qualified 501(c)(3) charities of the donor’s choice. No grants will be made to organizations that violate the moral principles and teachings of the Catholic Church.
- Grants cannot be used to satisfy an existing Diocesan or parish pledge.
Benefits to donors include:
- Accounts can be established in the donor’s family name, allowing loved ones to be memorialized.
- They are easy to establish with none of the administrative headaches and fees of private family foundations.
- They are flexible and allow the donors to recommend grant recipients; both within the diocese as well as with other charities they may wish to support.
- Donor’s can temporarily “park” charitable dollars at the end of a tax year and receive a charitable tax deduction in the year they make the gift(s).
- Donors can add to their fund at any time and receive the satisfaction of seeing their fund accomplish its objective during their lifetime.
- DAFs can be endowed, allowing donors to recommend grants of earnings only or provisional, allowing donors to recommend grants of both earnings and principal.
Additional information / Application:
If you have unanswered questions or want someone to contact you about a gift to your parish or school, please Contact Us!