In 2016, Global Impact “democratized giving” with the launch of a donor-advised fund (DAF) called Growfund, but it wasn’t like any other DAF on the market. Growfund boasted zero brokerage fees, a low grant requirement ($25) and no account minimum to get started.

“[We thought] how could you make this available for every person … donors of all sizes,” said Scott Jackson, president and CEO at Global Impact, an international philanthropy organization that focuses on humanitarian needs.

But, was the disruption to the DAF model successful?

Two years later, Growfund has an average of 350 users and $1.4 million assets under management. The platform counts personal donors, employers, nonprofits, universities and giving circles among their users.

To reach its goal of $10 million of assets under management, Global Impact isn’t relying on old-school methods. Instead, it’s using Growfund to provide solutions to what the next generation of donors is looking for.

The Power of a DAF

DAFs have been the fastest growing segment in philanthropy in recent years. Charitable assets under management reached an all-time high in 2016 at $85.15 billion.

The appeal of a DAF lies with the immediate tax benefit, while funds can grow and be distributed over time. Donors also like the element of ownership that exists: Although a DAF is managed by a 501(c)3, donors can recommend where their dollars go to grow their social impact.

Jackson said Growfund was designed to offer the same benefits and features as a traditional DAF, while removing some of the barriers of the traditional design.

“The fund doesn’t have to be huge to be successful,” Jackson said.

Responding to Giving Trends

As new patterns in philanthropy have emerged — a rise in collective giving, gender lens investing and corporate social responsibility, to name a few — Growfund has evolved with the sector.

Account holders, or advisors as they’re called on Growfund, can choose between four types of investment risk levels — conservative, aggressive, moderate and a money market account. However, with increased attention on gender equality gains and more women becoming primary decision-makers in investing, Growfund is adding a new ESG fund with a gender focus.

“What you care about, you can also invest in,” Jackson said.

Meanwhile, corporations are using the DAF platform to demonstrate their commitment to social responsibility. For instance, CARDONE, a leader in auto parts manufacturing, uses Growfund to support their CARDONE Cares.

“When [an employer] suggests what the company cares about, employees are really responding,” Jackson said.

Giving circles, where individuals pool their funds and collectively decide where to donate, have also become an integral part of the Growfund community. Since April, Growfund has partnered with 26 giving circles.

“People are looking for education and a platform to communicate and collect dollars,” Jackson said.

But, one big question remains. Is Growfund designed to drive impact? Growfund advisors can access more than 1.8 million charities sourced by the Guidestar directory, but Jackson also notes that Global Impact has a charity vetting team. Growfund currently features a number of curated “Giving Opportunities” related to a specific issue area (Hunger Fund) or geographic location (Africa Famine Relief Fund).

“Private philanthropy will be essential if we’re going to achieve [the world’s] goals,” Jackson said.