Donor Advised Funds

Have you ever considered creating a legacy of charitable giving for your family?  A Donor Advised Fund is a way that an individual (or family) can make a charitable gift and then advise on how and when the charitable distributions will be made.  The donor receives the tax deduction in the year that the gift is made and then can direct specific gifts to various Catholic organizations (parishes, schools, etc.) within the Diocese of Evansville when they choose.    

A Donor Advised Fund is established by an individual who can name one successor advisor.  This “family endowment” can be added to at any time and it provides an opportunity for a family to create a permanent legacy.  A minimum initial gift of $10,000 is needed to create a Donor Advised Fund.  A portion, or a minimum of $5000, is permanently endowed and the remainder is held in “unrestricted”.  The permanent endowed piece can be established for any entity within the Diocese of Evansville.  The endowed gift continues to generate an annual distribution for that designated area.  The unrestricted portion is distributed according to the donor’s direction. 

The following are some Frequently Asked Questions to establishing a Donor Advised Fund.  For more information, please contact the Catholic Foundation at 812-424-5536 or by email at foundation@evansville-diocese.org. 

Frequently Asked Questions

1.                  What is a Donor Advised Fund?

A Donor Advised Fund allows for individual, or family, to create a “charitable giving account” to benefit the Catholic causes they care about.    

2.         How does a Donor Advised Fund differ from a regular Endowment?

A Donor Advised Fund differs from a regular endowment because the donor can recommend grants to be distributed from the Donor Advised Fund to selected charities from an approved list.  These grants may be made from income and/or principal. 

3.         Can anyone establish a Donor Advised Fund?

Any individual, or family, can establish a Donor Advised Fund. 

4.         Is my gift tax deductible?

The gift is tax deductible during the year that it is given.  It is an irrevocable gift given to the Catholic Foundation of Southwestern Indiana, Inc.  The tax deductibility of contributions may be limited to percentages of your adjusted gross income.  Please consult your tax advisor for specific information.

5.         What is the minimum amount to open a Donor Advised Fund?

The minimum amount to establish a Donor Advised Fund is $10,000. 

6.         Do I need to permanently endow a portion of the gift?

The first $5,000 of each Donor Advised Fund will be restricted to a permanently endowed fund specified by the donor.

7.         Is there a limit to the amount of designations that I can give to each year?

These grants must be in the amount of $500 or above.  The total amount available to be distributed per year will be provided to you on an annual basis during the first quarter of each year.

8.         Can other people make decisions about who receives gifts from my Donor  Advised Fund?

A donor may name one successor advisor to make decisions on the Donor Advised Fund.  Following the successor advisor’s term, the Donor Advised Fund becomes permanently endowed and annual distributions are made to the specific designee determined by the donor.   

9.         What are the administrative costs associated with opening a Donor Advised Fund?

The administrative costs are determined annually by the Board of Directors of the Catholic Foundation.    

10.       How will the Donor Advised Fund be invested?

The Donor Advised Funds are pooled with the additional investments of the Catholic Foundation and invested according to the Investment Committee Policy Statement.  Individual records are maintained with specific details on principal and income, along with distributions.