Giving Compass' Take:
- The 2024 Donor-Advised Fund Report highlights how DAFs continued to serve as a stable funding source for nonprofits, despite decreased contributions amidst economic challenges.
- How can funders continue to provide consistent, impactful support to nonprofits during times of economic uncertainty?
- Learn more about best practices in philanthropy.
- Search our Guide to Good for nonprofits in your area.
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The 2024 Donor-Advised Fund Report, the most comprehensive review of the state of donor-advised fund (DAF) philanthropy in the U.S., details the value of DAF grantmaking to charitable organizations essentially remained flat year-over-year at $54.77 billion while contributions to DAFs decreased 21.7% to $59.43 billion. In 2023, DAFs continued to be one of the most consistent funding sources for charities despite economic and financial market headwinds.
“The 2024 DAF Report affirms DAFs help stabilize the philanthropic ecosystem when outside influences impact giving patterns,” said Holly Welch Stubbing, CEO of National Philanthropic Trust. “While individual charitable giving decreased according to GivingUSA, grantmaking from DAFs to charitable organizations remained a sustainable source for good. DAF grantmaking ultimately helped many charitable organizations fulfill their missions, and some expand their reach, during periods of economic volatility. The 18th annual report data underscores DAF donors continue to give, sometimes despite what economic sentiment may be.”
Welch Stubbing continued, “Pre-funding charitable giving with a DAF is a wise long-term philanthropic and financial strategy benefiting both charities and donors. We see many donors choosing to contribute both liquid and more complex assets such as appreciated stock, cryptocurrency, real estate or fine art, converting various asset classes into new mission-critical funding.”
2024 Donor-Advised Fund Report Key Findings
- Value of grants from DAF accounts to charitable organizations totaled $54.77 billion in 2023, a 1.4% decrease from $55.53 billion in 2022. DAF grantmaking has nearly doubled in the past five years (2019), according to the 2024 Donor-Advised Fund Report.
- Contributions to DAF accounts totaled $59.43 billion in 2023, a 21.7% decrease from $75.94 billion in 2022. This follows two years after the sharpest increase on record in 2021, attributable to donor response to urgent needs created by the coronavirus pandemic. Contributions to DAFs are irrevocable and destined for qualified charities.
- Charitable assets in all DAF accounts totaled $251.52 billion in 2023, a 9.9% increase from $228.92 billion in 2022. This growth in charitable assets under management is attributable in part to gains in global financial markets.
Read the full article about the 2024 Donor-Advised Fund Report at Business Wire.