[Note: This article was co-posted February 25, 2015, in Inside Philanthropy.]
The unbridled growth of donor-advised funds (DAFs) is the biggest story in philanthropy. Some startling facts:
- Contributions to DAFs were 252% higher in 2013 than in 2009, and by all accounts 2014 was another record-breaking year.
- Three of the top ten organizations in the Chronicle of Philanthropy’s most recent “Philanthropy 400”—the annual listing of the nonprofits that have raised the most money—were commercial donor-advised fund sponsors (Fidelity, Schwab, and Vanguard). A fourth was another DAF sponsor, the Silicon Valley Community Foundation.
- Gifts to donor-advised funds represented 7.1 percent of all charitable donations from individuals in 2013, a doubling of DAFs’ percentage of charitable giving from only three years before.
This is more than a trend. It’s a tsunami. But what does this all mean for the nonprofit sector? Continue reading