Many charitable individuals and families have set up donor advised funds. And during times like these, we all can be grateful.

When markets drop significantly or when businesses aren’t as profitable, the charities that we love need us more than ever. Passionate donors desire to support the parishes and ministries they love with a contribution at the same level they have given in the past. 

Fortunately, those donors who’ve previously established a donor advised fund (DAF) are able to continue to provide generous and consistent funding to their favorite charities, even when their investments drop in value or when their income decreases.  

“These funds function like a family charitable checking account,” says Angela Moloney. “Individuals and families can receive a tax benefit when it is best for them, and direct the gift when it is in the best interest of the nonprofit organization.”

For example, knowing that some donors who give out of pocket may decrease their contributions if their jobs or investments feel uncertain, individuals with donor advised funds can  strive to provide the same or even larger levels of support. 

A benefit of contributing to a DAF, which can be administered by the Catholic Foundation of Michigan, is that “the donor has the ability to be flexible in choosing both the timing and recipients of the grants,” shares Chris Nemes, CPA and Preferred Advisor with the Catholic Foundation.

Additionally, many donors have been advised to bunch contributions to DAFs during high income earning years. This trend has helped donors realize the ability to provide consistent levels of support during times when their income will be less or when the tax benefits of donating may decrease.

All of us at the Catholic Foundation are grateful for our donor advised fund holders. We are here to support them in their faithful generosity to the ministries and nonprofit organizations in our community.


Learn more about how families use their Donor Advised Funds.