Updated April 29, 2019
Understanding and Tapping Into Donor-Advised Funds
Money continues to flow into donor-advised funds at a record-setting pace: Assets in these accounts topped $110 billion in 2017, about a 30 percent increase in just one year.
Donor-advised funds have been a mainstay of community foundations for generations, but in the last 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 such funds. Last year, Fidelity Charitable alone attracted $6.8 billion in new contributions.
Individuals who open these accounts, which are invested and can continue to increase in value, may make a contribution and within the same year take a tax deduction, but then wait as long as they wish to direct the money to charity.
Critics say DAFs siphon money away from, or delay it from reaching, nonprofits that sorely need support. The funds also make it more difficult for fundraisers to build ties with donors for two primary reasons.
First, 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, even when directed by those who opened the account.
Second, because some account holders remain anonymous when making a gift, fundraisers can't thank or build relationships with donor-advised-fund account holders.
To help you navigate this complex setup, we've gathered resources that answer questions about DAFs, explain how donor-advised funds are changing philanthropy, and offer advice on how to connect with fund owners.
Article
January 07, 2019
Disruption Ahead: What to Know About Donor-Advised Funds in 2019
With Fidelity Charitable poised to become the country’s biggest grant maker, can charity fundraisers — or Congress — ignore the stockpiles of money in donor-advised funds?
Article
January 07, 2019
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.
Article
March 27, 2018
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.
Video
August 09, 2019
Donor-Advised Funds: The Basics
Join the Chronicle of Philanthropy and our expert guests for a thorough overview of donor-advised funds, including:
- basic terms and concepts all fundraisers should know
- the different types of organizations that sponsor them
- their impact on charitable giving and
- insights into the donors who set up these funds.
You'll also learn how to prepare your back office to accept and process these gifts and gain an understanding of how money from these funds can and cannot be used.
Plus, you'll he...
Video
February 20, 2020
Gifts from DAFs: Answers to Your Questions
Because the phenomenal growth of donor-advised funds shows no sign of stopping, many nonprofits are adjusting their fundraising strategies to easily accept and process these gifts from wealthy donors.
To help you understand all aspects of attracting gifts from DAFs, you'll learn from a chief development officer whose nonprofit raises $21 million a year and has more than 2,000 DAF donors; an investment manager who serves foundations, endowments, and other nonprofits nationwide; and a philanthrop...
Article
May 01, 2018
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.
Article
December 12, 2017
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.
Checklist
April 05, 2016
5 Ways to Attract Gifts From Donor-Advised Funds
Experts share tips on how nonprofits can get more contributions from DAF owners.
Article
January 07, 2019
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."
Article
November 01, 2018
Donor-Advised Fund Sponsors Dominate Top Ranks of Nonprofits for Attracting Gifts
Fidelity Charitable attracted $6.8 billion last year — more than United Way Worldwide, the Salvation Army, and Alsac/St. Jude Children’s Hospital combined.
Article
October 29, 2015
How Donor-Advised Fund Holders Think About Gifts
Most have a "good sense" of where they want their donations to go, according to a study that offers a rare glimpse into their thoughts on philanthropy. Plus, how men and women differ in planning and making gifts.
Article
November 13, 2018
Value of Donor-Advised Funds Soars Above $110 Billion
Grants made from funds to charity totaled more than $19 billion in 2017, an increase of nearly 20 percent over the previous year, according to the National Philanthropic Trust.
Article
September 07, 2016
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.
Article
October 27, 2016
Donor-Advised Funds Reshape the Philanthropy Landscape
The donation vehicles managed by Philanthropy 400 leader Fidelity Charitable and other sponsors are changing how Americans view giving — and how charities compete.
Data
October 27, 2016
A New Way to Give: Inside the Donor-Advised-Fund Explosion
A Chronicle analysis of 85 sponsors of donor-advised funds offers insights into the phenomenal growth of these giving vehicles that are challenging conventions of philanthropy.
Article
October 27, 2016
Flush With $51 Billion, Donor-Advised Funds Face Payout Questions
As the funds' collective coffers swell, their rate of grant making has slowed, further fueling criticism that the popular charitable accounts are warehousing dollars that could be doing good.
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