October 10 is DAF Day, a new kind of giving day that celebrates the benefits of Donor-Advised Funds (DAFs)

Many Americans set aside a portion of their annual budget for charitable donations. This month, the Development Office at the Archdiocese of New York is highlighting a unique way people can contribute to the charities they know and trust: by giving to a Donor-Advised Fund (DAF).

What is a DAF? DAFs are charitable savings accounts that empower donors to be strategic and have a greater impact in their giving. 

“Part of the appeal of DAFs is their simplicity,” shared a representative from the Development Office for the archdiocese. “There are over 1,000 DAF providers in the U.S. – all public charities – including those affiliated with financial institutions, community foundations, and more.”

In an email to The Good Newsroom, the representative also shared that, after opening a fund, a donor can contribute cash, securities, or other assets to their DAF for an immediate tax deduction. Those funds can then be invested for tax-free growth, and he or she can recommend grants from their DAF to eligible IRS-qualified public charities at any time. In this way, DAFs are less complicated, expensive, and rigid than creating a trust or family foundation. Moreover, they don’t necessarily require a large amount of capital to establish, and investments grow over time for an even greater giving impact, making DAFs the fastest-growing way to make a gift.

“I recently had a donor, an elderly woman, who experienced some confusion on her tax returns. Between issues with the banking, lost checks, and rewritten checks, her advisors recommended utilizing a DAF to keep her finances clean and less complex,” said Elizabeth Cotter, archdiocesan Director of Major and Principal Gifts for the Cardinal’s Annual Stewardship Appeal. “Also, the banks make the distributions often with an ACH so there is less risk of bank fraud from a mailed or lost check. She is very grateful for the suggestion as now her tax advisor can make adjustments with her periodically to maximize her contributions and tax benefits, and ultimately avoid a lengthy tax return.”

Over time, a donor can recommend DAF grants to support the Cardinal’s Annual Stewardship Appeal. The Appeal supports financially vulnerable parishes, evangelization, charitable outreach, priest formation and care for retired clergy. To date, over $1.5 million has been raised through 224 gifts by 200 donors, an increase from last year’s annual appeal, which raised just over $1 million through 137 gifts by 114 donors. Additionally, the Development Office shared that Catholic schools in the archdiocese have received over $1.4 million from 254 DAF gifts.

To learn more about making a gift to the Cardinal’s Annual Stewardship Appeal through a DAF, visit:  https://cardinalsappeal.org/donor-advised-funds.