Donor Designated Fund
If you have a specific charity that you want to fund — such as a parish, school, or other cause — you may take advantage of what a donor designated fund (DDF) offers.
Benefits Of A Donor Designated Fund
- At age 72, you can satisfy your required minimum distributions (RMDs) from your retirement account by directing qualified charitable distributions (QCDs) to fund your DDF. A QCD excludes the amount donated from taxable income, which is different from other IRA withdrawals. This strategy allows you to lower your adjusted gross income, fulfill your RMD, and support your favorite charity.
- Your DDF also accepts other gift types, such as appreciated stock and real estate.
- If you fund your DDF with assets other than a QCD, you receive a tax deduction.
- You can make grants on your own timeline.
How A Donor Designated Fund Works
- You set up a fund agreement with a single charitable beneficiary that cannot be changed.
- Transfer cash, appreciated assets, real estate, or qualified charitable distributions (QCDs) from your IRA to your DDF and receive tax benefits.
- CCF invests the fund in alignment with our Catholic faith to increase your giving capacity.
- You decide when and how often you want to grant from your DDF to your beneficiary.
- You may choose to endow your fund with all remaining funds going to your beneficiary.
If you have questions about Donor Designated Funds, please contact us. We'd be happy to assist you with any questions.