A donor advised fund (DAF) is a tax-advantaged charitable giving account you can use for your charitable donations. A DAF is similar to an investment account, but one with a special purpose. Think of the DAF as its own charity. When you contribute funds to it, you receive an income tax deduction. You can then use funds in your DAF to make charitable gifts when you want to make them.
DAFs invested with CFAD help encourage giving to our Catholic community. Also, CFAD invests these funds in alignment with Catholic values until you advise where to distribute the monies, which can include your church.
CFAD is a DAF sponsor, meaning people can create and have their donor advised fund administered through us. We see CFAD and holding donors’ DAFs as a ministry to the Catholic community we serve to grow the Church’s ministry and mission in the 30 northeast Iowa counties.
If you want to give to charity strategically and time your giving for maximum benefits, create a donor advised fund. Make it the single recipient of your charitable contributions and advise it to make distributions to multiple charities when you want and to the organizations you want.
Our values guide us in providing personal assistance to donors with our professional guidance. Through CFAD's relationships with the parishes, schools, cemeteries and Catholic nonprofits, we learn about their greatest needs and new initiatives. Our charitable mission means we’re ready to answer your questions about ministries and programs that align with your interests.
TIMING
If you want to make a gift this year for tax purposes but are unsure which charity you want to receive it (or when), you can contribute to your DAF and make the grant later.
PRIVACY
Your DAF can make gifts anonymously on your behalf.
SIMPLICITY
Rather than track your charitable giving to many organizations, you can give all your donations to the DAF, which consolidates and simplifies your recordkeeping, tracking your distributions for you.
LEGACY
You can name your children or grandchildren as co-advisors to the DAF, which helps instill a sense of family giving and a legacy for you and them. Bring them on the journey and joy of generosity. Giving from your DAF through your estate can also simplify your charitable estate bequests.
GROWTH
CFAD offers four investment portfolios, and you can advise which one aligns with your preferences. Investments over time grow tax-free, which will allow you to give more for longer.
DEDUCTIBILITY
You may be entitled to take an immediate income tax deduction each time you make a gift. Contributions of appreciated capital assets avoid capital gains taxes.
FLEXIBILITY
You can give when and where you want. Take your time deciding how to designate your giving. There is no deadline for making distributions.
VERSATILITY
You can make gifts to your DAF using cash, appreciated securities and a variety of other assets. You can make a gift of one large asset to fund multiple charitable interests.
“BUNCHING”
"Bunching" is an option that optimizes your charitable deductions for tax purposes. By combining multiple years of what you “normally” give to charity into a single year, you may be able to take advantage of the itemized deduction that year. If you give those higher amounts to charities in a single year, it can cause volatility in their budget. If you put it in your DAF, you get the tax benefit and then can still donate it to charities on your “normal” giving timeline.
FOUNDATION-LIKE
DAFs are a strategic alternative to the more costly, limiting private foundation option, yet can be utilized as a family foundation.
A donor advised fund is easy to create with a few simple steps.
1. Complete our simple DAF application. Please contact us for a copy of the application. You can name the DAF your family name, a favorite saint name or some other meaningful name.
2. Make an initial gift of cash or an appreciated asset to fund a DAF at our organization. The assets in your DAF grow tax-free and earn interest.
3. Make grant recommendations from your DAF.
4. When you no longer are able, your heirs can continue to recommend charitable grants from your DAF if you choose.
Already have a DAF but would like to align it with your Catholic values?
Do you want to compare your current DAF investment and administrative fees or learn how those fees are used?
Contact Us and ask us about the easy process with CFAD to start or transfer your DAF!
Minimum to Open a Fund: Endowed - $25,000 Non-endowed - $5,000
Minimum Grant: Endowed - $500 Non-endowed - $250
Fees: No set-up fees; annual 0.6% fee assessed quarterly from the fund (0.15% on the quarter-end market balance) (for non-endowed $300 minimum annually)
All DAFs have administrative fees. As a residual effect of your DAF with CFAD, we are able to do more to help Catholic causes. Because of their religious nature, our churches and many other Catholic organizations don’t have the same access to grant sources as non-religious organizations. All fees on our DAFs further the Foundation’s mission and the impact that we have in the Catholic community.