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Giving Compass' Take:
· Writing for Worth, Eileen Heisman takes a look at the rise of donor-advised funds and what led to their rapid drive to popularity.
· Why have donor-advised funds become so popular? What benefits do they provide?
As we prepare to say goodbye to the 2010s, I have been reflecting on the past decade in donor advised funds (DAFs). There are some important truths that fuel charitable giving, including DAFs, and that have remained the same for a long time: Americans are generous and donors want to stay close to their philanthropy.
But what’s changed? Almost everything else. The platforms and tools that DAF donors use to give have changed significantly in the past decade. The charities where donors start their DAFs and the types of assets that they give to fund their philanthropy are evolving. In 2010, there were over 184,000 DAFs in the U.S. Today, there are more than 728,000, an almost 300 percent increase.
In addition to the sheer volume of DAFs, the grants from them have tripled in the past decade from $7.24 billion in 2010 to $23.42 billion, according to National Philanthropic Trust’s most recent report. A review of some of the events and trends that spurred the growth of DAFs is below.
Read the full article about donor-advised funds by Eileen Heisman at Worth.