A donor-advised fund (DAF) works like a charitable checking account, offering a simple and flexible way to support the ministries and causes you care about, including Nativity of Mary and the wider Church. When you make a contribution to your fund, you receive an immediate tax deduction and can then recommend grants to charitable organizations at your own pace. While you are discerning where to give, your funds are invested and can grow tax-free.
You can establish a donor-advised fund through your bank, financial advisor, or an investment organization such as the Catholic Community Foundation of Minnesota. This allows you to give with confidence, knowing your generosity is invested in alignment with your Catholic faith.
A donor-advised fund may benefit you in a number of ways:
- It’s an efficient, consolidated system for managing charitable giving.
- All gifts to your donor advised fund are tax-deductible.
- A donor advised fund can help facilitate tax-efficient giving strategies like “bunching”.
- When you make gifts of appreciated assets, such as stock, shares in a business, or real estate, you can avoid paying taxes on the capital gains.
- Simplified tax preparation.
- You’ll have the ability to name your fund — or give anonymously — without having to establish a Private Family Foundation.