The bad news about commercial donor-advised funds is getting worse.
As my loyal readers know, I’ve been giving attention here and in national journals to the negative impact that the burgeoning popularity of donor-advised funds is having on traditional charitable giving. People have been dumping money into Fidelity Charitable and Schwab Charitable in record numbers, to the point where in 2011 they ranked as the number two and number twelve “philanthropies” respectively in terms of money received from donors. Their cousin, Vanguard Charitable, hasn’t been doing so badly either, ranking number 22 on the Philanthropy 400. (To put their success in perspective, numbers 20 and 21 on the list were the not inconsiderable fundraising machines of Harvard and Yale.) Continue reading