Donor-advised funds (DAFs), first created in the 1930s, have long been a cornerstone of philanthropic giving. However, they have undergone a remarkable evolution in recent years, driven by digital innovation and increasing donor interest. According to the Giving USA 2024: The Annual Report on Philanthropy for the Year 2023, Americans have facilitated over $550 billion to charity, with two-thirds of those funds coming from individuals. Looking ahead, philanthropy holds immense growth potential, fueled by several key factors: the influence of the Great Wealth Transfer, the adoption of employee-driven corporate giving programs, the growing integration of philanthropy into holistic financial planning and advancements in "Philanthropy-Tech" — digital solutions that simplify and personalize charitable giving. Notably, per a recent Cerulli Associates report, approximately $18 trillion of the $124 trillion Great Wealth Transfer is expected to go to charity.

To explore these trends and innovations, we spoke with Paul Lussow, CEO of TIFIN Give — a next-generation, digital charitable giving platform within the TIFIN ecosystem. Recognized as a 2024 WealthManagement.com “Wealthies” finalist for Charitable Innovator of the Year, TIFIN Give continues to lead the industry by redefining donor-advised funds and expanding the possibilities of philanthropy. Among its groundbreaking features is a collective giving campaign tool that allows donors to engage their communities through shareable links and QR codes, making philanthropy more collaborative and impactful than ever. We sat down with Paul to discuss how TIFIN Give is shaping the future of charitable giving and empowering advisors to bring philanthropy to the forefront of wealth management.

Bill Hortz: What are the most significant trends in philanthropy today, and how are donors' behaviors changing?

Paul Lussow: The amount of philanthropy has remained remarkably stable over time — hovering around 2% of total gross domestic product since the early 1970s and spanning various tax policy environments. However, the ways in which people approach their charitable giving is evolving rapidly.

Donors today are more informed, globally aware, and focused on aligning their charitable giving with their values. We are seeing a demand for transparency and measurable impact, as donors want to know how their contributions are making a difference.

Read the full article about DAFs and the Great Wealth Transfer by Bill Hortz at Financial Advisor.