Giving USA donor-advised fund special report

By Josh Dukelow, gift planning officer

Donor-advised funds (DAFs) are a very popular tool for charitable giving. Data from Giving USA’s 2022 Special Report on DAFs illustrates just how much their use has grown. For example, the total assets donated to DAFs more than quadrupled from 2006 to 2019 (the latest year data is available). You will also see below that DAFs established at commercial brokerage firms have grown rapidly in recent years, but not all DAFs are the same.

The Community Foundation for Greater Atlanta is happy to discuss the unique advantages we offer to help your clients realize tax savings, build a philanthropic legacy, and maximize their local charitable impact. To learn more, contact Alison O’Carroll, director and philanthropic counsel, at 404.333.0421 or aocarroll@cfgreateratlanta.org.

Key Takeaways

• DAF usage increased significantly:

	2006	2019
Number of DAF accounts	160,000	873,228
Total DAF assets	$31.1 b	$141.95 b
Funds donated to DAFs	$9 b	$38.8 b
Grants given from DAFs	$5.7 b	$27.7 b

• While overall giving rose 52%, some categories of DAF growth exceed 300%
  • Like other giving sources, a large share of funds are in a small share of accounts
  • In 2019, DAF grants were 6.1% of all charitable giving (up from 3.8% in 2014)

• DAF Grants by Sponsor Type
  • National/Commercial Firms:                          61%     (up 110% 2014-2018)
  • Community Foundations:                               26%     (up 51% 2014-2018)
  • Single-Issue Organizations:                            13%     (up 77% 2014-2018)

• DAF Donor Profile
  • DAF donors are older, on average, but younger donors are catching up quick
  • DAF donors report using a variety of giving mechanisms, not just DAFs
  • DAF donors are more likely to have a “strategy” for their charitable giving
  • DAF donors often name successor advisors to create a philanthropic legacy
  • DAF donors often use DAFs as an alternative to a private foundation (DAFs are far simpler to administer, have no required minimum distribution, and no excise tax on earnings)

• DAF Grants by Recipient Org

Education	29%
Religious	14%
Public Society Benefit*	13%
Human Services	12%
Arts & Culture	9%
Health	9%
International	7%
Environmental/Animals	5%

*Dollars given to National/Commercial DAFs are classified in this sector

• Education is the top recipient from DAFs, while Religion leads in overall giving
• About half of DAF grants go to orgs with $20m+ in annual revenue (big orgs)
• About 60% of DAF grants from Community Foundations stay in the state/region
• Grants to HBCUs and Human Service orgs saw a substantial surge in 2020