By: Miriam Pereira, Senior Advancement Officer
For Jerry and Julie Kerr, philanthropy is foundational to their faith. The Naples couple has supported churches as well as Christian youth and educational organizations for years. They believe so deeply in sharing their blessings that they opened a donor advised fund (DAF) and involve their children and grandchildren in their charitable giving.
DAFs are like investment accounts with the sole intention of supporting charitable organizations. Donors transfer cash, appreciated stock or other assets to these accounts, which are held and managed by public charities like community foundations. In exchange, donors receive tax deductions, and their contributions are invested. Donors can then recommend grants from their funds to IRS-qualified charities like the David Lawrence Centers for Behavioral Health (DLC).
There’s no doubt that DAFs are playing a growing role in philanthropy because of the benefits they offer donors. Charitable contributions made through DAFs totaled $54.77 billion in 2023. And in the past decade, giving through DAFs has increased by 400%. Like the Kerrs, many donors use DAFs for traditional individual and family giving. More donors also have adapted DAFs for workplace giving programs, online fundraising platforms and other models that expand philanthropy, according to the National Philanthropic Trust.
Benefits of a DAF
In 2000, the Kerrs opened a DAF to serve as a charitable investment account. They started by transferring appreciated stock to the DAF. This step enabled the couple to diversify their holdings, to take tax deductions, and to direct contributions to charitable organizations at any time throughout the year. The convenience of having their DAF managed by professionals was also another benefit.
“Over the years, we have continued to transfer stock to the fund, and our investment decisions within the fund have contributed to its growth,” Jerry Kerr says.
Family Affair
Today, the Kerrs have a Family Giving Dinner around Christmastime with their two adult children and three grandchildren to decide on their charitable giving for the year. Recommendations must receive a majority vote. “We try to make each gift significant,” he says.
In recent years, the family has focused their philanthropy on hunger and mental health, the latter becoming a compelling cause because their grandchildren have seen the effects of mental health challenges on their peers.
“After exploring and investigating organizations that we collectively felt could best benefit from our annual gift, we identified DLC,” Jerry Kerr says. “When both families joined us in Naples, we arranged a tour of the facilities and learned more about DLC’s programs. It was compelling, and the vote was unanimous.”