Who is the Catholic Foundation?
Since 2000, the Catholic Foundation for the Diocese of Saint Cloud has remained committed to nurturing stewardship and philanthropy to strengthen the Church and serve God’s people. Looking forward, our goal is clear: to be a steady force for parishes, schools, and the diocese. Each gift, whether given today or planned for tomorrow, is a testament to faith and hope. The Catholic Foundation exists so that generosity today can continue into the future ensuring the light of Christ shines for generations to come.
Make Your Charitable Giving Go Further Continued
Last month, Cathy Juilfs, CFP®, AIFA, CEBS (left), and Chris Duke, CFP® (right), of AIS Planning highlighted Donor Advised Funds, DAFs, as a charitable giving tool that can help families make their charitable giving go further. To recap, a DAF is a simple and flexible charitable giving tool that allows families to contribute assets, receive a potential tax deduction, and recommend grants to their favorite charities over time. It is especially useful in high-income years and helps families support the causes they care about—like their parish, schools, and ministries—while building a lasting legacy of
generosity, with the added option of anonymity.
This month, they are highlighting an example of why gifting an appreciated asset to a DAF actually results in a larger gift rather than selling the asset then gifting it. Here are their thoughts: When considering a DAF, one of the most powerful strategies involves donating appreciated investments instead of cash. If appreciated stock is sold first, capital gains taxes may be owed before the money is donated.
However, when appreciated investments are donated directly to a Donor Advised Fund, the charity receives the full value while the donor may avoid paying capital gains taxes altogether. The below is an example of this difference in giving playing out. On the left, the asset is sold with proceeds being gifted. The right shows the asset directly being gifted resulting in a larger gift.
The best place to start looking for assets to give are your appreciated stocks in your non-retirement account. Using the stock donation method also does not need to include the entire position you own. You can specify the number of shares to donate. Take a look at your investment accounts and see if that makes sense for you and your goals.
The purpose of these emails is to assist in developing a culture of philanthropy across the Diocese of Saint Cloud. Our goal is to provide education, build
awareness, and convey the impact a planned gift can have on our Catholic community. This email is not legal or financial advice but just informational.
Other Ways to Donate Appreciated Assets
Donor Advised Funds (DAFs) are a popular vehicle for charitable giving, especially when donating appreciated assets, but they are not the only option. If you are not interested in having a DAF, that is okay. Here are some additional ways to giveappreciated assets that you may like depending onyour goals, tax situation, and desired level ofengagement.
One straightforward alternative is making a direct gift of appreciated securities—such as publicly traded stock—to a qualified nonprofit organization. By transferring the asset rather than selling it first, donors can often avoid capital gains tax while receiving a charitable deduction for the full fair market value. This allows the charity to benefit from the asset’s full value rather than reduced after-tax proceeds.
Another meaningful way to support the nonprofit organizations you care about is by including appreciated securities in your estate plan. You can name the organization as a beneficiary of the asset or specify in your will that the asset be gifted to them. This approach allows you to make lasting impact while aligning your charitable goals with your overall estate planning strategy.
In some cases, however, a donor’s intended recipient such as a local parish, school, or ministry— may not have the internal resources or policies in place to accept or manage more complex gifts. This is where a partner like the Catholic Foundation can play a valuable role. By working alongside both the donor and the local organization, the Foundation can help facilitate the donation if needed.
This partnership allows donors to support the specific Catholic causes they care about while removing administrative burdens from the parish or ministry. The Catholic Foundation essentially serves as an intermediary, providing expertise and gift processing capabilities that smaller organizations may not have on their own. In doing so, it ensures that both the donor’s intent is honored and the receiving organization can benefit fully from the gift without added complexity or risk.
Ultimately, while donor advised funds provide convenience and flexibility, they are just one tool among many. Donors who explore a broader range of giving options can find solutions that align with their financial goals, maximize tax efficiency, and deepen their connection to the causes they care about.
If you have an appreciated asset that you are looking to give to a non-profit organization but are unsure of what method to use, please reach out to the Catholic Foundation. They will help you align your wishes to a method of giving that works for that asset.
Contact information
Looking for more information? Please reach out to David or Chris at the Catholic Foundation. They are happy to help!
David Eickhoff: Executive Director
Email: deickhoff@catholicfoundation.info
Phone: 320.258.7657
Chris Backes: Planned Giving Coordinator
Email: cbackes@catholicfoundation.info
Phone: 320.257.2139