Donor-Advised Funds a special help to charities

The holidays are a time for gathering with family and friends but for those who struggle to put food on the table, the season brings extra challenges. Inflation and the rising cost of food are driving neighbors to seek assistance from Northern Illinois Food Bank at historically high rates.

Northern Illinois Food Bank is serving on average 540k neighbors every month, about 80k more than last year -- and through our network of more than 900 food pantries and programs, provided 82.3 million meals across our 13-county service area last year.

Higher food prices also impact Food Banks. The increase in neighbors coming to our network means the Food Bank is having trouble affording enough food and keeping our inventory replenished for our pantries. Our food is moving faster than it has in the last six years, and we are purchasing additional food to meet the demand.

With donors inspired by the holiday spirit, nonprofits will receive more donations this month than any other time of the year.

Each year nonprofit organizations, including Northern Illinois Food Bank, receive generous contributions from Donor-Advised Funds (DAFs). DAFs are donor investment accounts for charities, administered by charitable sponsors allowing donors to receive the tax deduction when they fund the account, while directing grants in future years from those funds to the charities of their choice.

According to the 2023 Giving USA study, assets in DAFs now exceed $250 billion. This is an extraordinary amount of potential gifts for charitable organizations.

Many donors who contribute to charities through DAFs may be holding onto assets for a time when they can do the most good - and now is the time. The billions of dollars in DAFs could be utilized immediately by charities serving our Illinois communities.

I encourage all those with DAFs to extend your generosity by making DAF grants to the charities in their communities whom they trust to make a positive impact on our neighbors.

Julie Yurko, President and CEO

Northern Illinois Food Bank

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