Unlock the Power of Donor Advised Funds for Your Philanthropy

Do you care deeply about supporting older adults and people with disabilities in our community, but traditional giving methods don’t quite fit your needs? Have you ever considered establishing a Donor Advised Fund (DAF) to streamline your charitable giving? DAFs can be a powerful tool for achieving your philanthropic goals.

What is a Donor Advised Fund?

A DAF is a charitable giving account administered by a public charity. You can contribute assets to your DAF, receive an immediate tax deduction, and then recommend grants to your favorite charities over time. This allows you to simplify your giving process, make strategic donations, and involve your family in your philanthropy. As the National Philanthropic Trust notes, “This allows donors to give when they can, and then grant when it’s needed.”

Why Consider a DAF?

• Maximize Your Impact: DAFs allow for larger, more impactful donations to CICOA Foundation. Contribute appreciated assets and avoid capital gains taxes, maximizing the value of your gift to our mission.
• Tax Benefits: Receive an immediate tax deduction for your contribution to the DAF, regardless of when you recommend grants to charities.
• Strategic Giving: Make thoughtful decisions about your charitable giving throughout the year, ensuring consistent support for CICOA’s programs.
• Family Philanthropy: Involve your family in your giving decisions and create a lasting legacy of charitable support.
• Simplified Giving: Consolidate your charitable giving into a single DAF, making it easier to track your donations.

DAFs and CICOA Foundation

The CICOA Foundation relies on the generosity of donors to fulfill its mission. If you have a DAF, consider recommending a grant to support our critical programs and services for older adults and people with disabilities in Central Indiana. Your contribution will make a significant difference in the lives of those we serve.

We understand the importance of building relationships with our donors. Whether you have an existing DAF or are considering establishing one, we are here to help. We can provide you with information and resources to make informed decisions about your charitable giving.

Recent Developments in DAFs

Donor Advised Funds have recently been a topic of public discussion. While the conversation is important, I trust that lawmakers will not lose sight of how DAFs are benefiting charities that do good across the country and around the world.

It’s valuable to note that DAFs are a powerful tool for charitable giving. According to the National Philanthropic Trust’s 2023 Donor Advised Report:

• Giving is on the rise: In 2022, donations from DAFs to charities reached a record high of $52.16 billion, a 9% increase from the previous year. This is the first year giving surpassed $50 billion!
• DAF popularity is growing: The number of individual DAF accounts continues to climb, with a 2.9% increase in 2022, bringing the total to nearly 2 million.
• Payout rates remain strong: Even though the payout rate dipped slightly in 2022 to 22.5%, it remains well above 20% for every year on record. This means a significant portion of DAF funds are ultimately distributed to charitable organizations.

The Power of DAFs in Action

A few years ago, I had the pleasure of working with a donor who utilized a DAF for strategic giving. By simply inquiring if they kept extra funds in their DAF, I secured additional support for a crucial campaign. I made five similar asks and all five donors said yes. This experience solidified my belief in the power of DAFs to unlock impactful donations for organizations like CICOA.

Getting Started with a DAF

Many community foundations and national charitable organizations offer DAF options. Here are a few resources to get you started:

• Central Indiana Community Foundation (CICF): https://www.cicf.org/
• Fidelity Charitable: https://www.fidelitycharitable.org/
• Charles Schwab Charitable: https://www.schwab.com/donor-advised-fund
• Local community foundation in your county
• Your faith community

CICOA Foundation and Your Philanthropy

Become a champion for older adults and people with disabilities in our community. Include CICOA Foundation in your DAF grant recommendations and unleash the transformative power of your generosity. We are grateful for your support!

Remember, I’m always here to answer your questions and help you make informed decisions about your charitable giving. Contact me today!

Steve Gerber

Steve Gerber brings experience in pastoral ministry, nonprofit management and fundraising team leadership to his role as CICOA’s chief development officer. Steve is responsible for the agency’s overall fundraising strategy, leading annual campaigns, major gifts, planned giving, grants and special events.

He holds designations for Certified Fund Raising Executive (CFRE) and Chartered Advisor in Philanthropy^® (CAP^®), and the executive certificate in religious fundraising. Steve earned a bachelor’s degree from Tennessee Temple University, a master’s degree from Grace Theological Seminary and a master’s in business administration from the University of Phoenix.