Money continues to flow into donor-advised funds at a record-setting pace. Donors to Fidelity Charitable put $14 billion into their accounts last year, and just over $9 billion was directed to charities, the group recently reported.
Donor-advised funds have been a mainstay of community foundations for generations, but in the past decade or so their popularity has exploded. That surge has been driven in large part by financial-services companies entering the field and spinning off charitable arms to manage them.
Individuals who open these accounts, which are invested and can continue to increase in value, can take a tax deduction the same year they make a contribution. But they can wait as long as they wish to direct the money to charity.
Critics say DAFs delay or prevent money from reaching charities, that sorely need support. The funds also make it more difficult for fundraisers to build ties with donors.
Once a donor transfers money into a fund, the sponsoring organization becomes the legal owner and the legal donor. When a gift is made from the account, it can be difficult to determine who directed the gift to be made. Some account holders choose to remain anonymous when making a gift leaving nonprofits no way to thank them or develop a relationship with them.
To help you stay on top of the latest information and advice on DAFs, we’ve gathered news, opinion, and how-to articles that explain how they work, how they are changing philanthropy, and how to connect with those who open these accounts.
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Individual Giving
Community Foundations Report 41% Bump in Grants From Donor-Advised Funds
For every dollar that came in to a community foundation’s donor-advised fund in 2020, 87 cents went out. -
Fundraising
Tips for Getting Close to Those Who Manage and Open Donor-Advised Funds
Lots of people are in the orbit of DAF donors ― program officers at community foundations, professionals at other sponsoring organizations, legal and wealth advisers. Here are tips for connecting with them, and a few ways to reach the donors directly. -
Donor-Advised Funds
Fidelity Charitable Donors Channeled $9.1 Billion to Charities Amid the Pandemic
That is a surge of 24 percent and comes as the biggest donor-advised fund sponsor received more than $14 billion in 2020. Still, charities say they are struggling to meet needs and have made many job cuts. -
Advice
How to Land Donor-Advised Fund Gifts
The rules keep fundraisers in the dark, but some groups are breaking through to donors. -
Donor-Advised Funds
Donor-Advised-Fund Claims Spark Pushback From Critics
Fidelity’s announced last week that its donors directed $9.1 billion to charity last year; still, critics say donor-advised-fund sponsors exaggerated how much money is actually flowing to working charities. -
Advice
How Community Foundations Tap Wealth Advisers to Attract Donor-Advised Funds
Meeting with financial advisers regularly and touting your organization’s expertise in the community helps attract these funds. -
Advice
Inside One Group’s Fundraising Windfall From Donor-Advised Funds
Why the Pan-Mass Challenge is the only regional nonprofit among the top recipients of Fidelity Charitable donations. -
Trends
Charities Capitalize on the Donor-Advised-Fund Boom by Creating Their Own
The American Heart Association, Nature Conservancy, colleges and universities, and others have started their own funds instead of ceding donations to Fidelity, Schwab, and community foundations that are more typical sponsors. -
News
Effort to Spur Giving From Donor-Advised Funds Online Appears to Stall
A tech tool promoted by Fidelity Charitable and others as a fundraising boon has done relatively little to spur giving, and Fidelity is talking about a “revamp.” -
Advice
Working With Donor-Advised Funds: The Basics
Donor-advised funds continue to boom. Here are answers to some frequently asked questions about receiving donations from the accounts. -
Advice
5 Ways to Attract Gifts From Donor-Advised Funds
Experts share tips on how nonprofits can get more contributions from DAF owners. -
Advice
An Introduction to Donor-Advised-Fund Terms and Concepts
Confused about accepting gifts from donor-advised funds? Here’s a primer on this fast-growing way to give.