Finance
Donor-Advised Funds: Flexibility, Impact, and the Future
“No one has to give to a donor-advised fund. The fact that millions of families are choosing to create a donor-advised fund, I think, is an indication enough that we're onto something that donors value.”
Donor-Advised Funds: Flexibility, Impact, and the Future
Why donor-advised funds outpace private foundations in charitable giving, granting 15-25% of assets annually versus the 5% foundation minimum, and how this benefits donors and nonprofits.
May L. Harris Esq., MA
Founder & CEO of Nonprofit Counsel
May L. Harris is the Founder and CEO of For Purpose Law Group, where she leads with bold vision, Empowering the organizations that are changing the world.
Ted Hart
Global Thought Leader in Philanthropy
Ted Hart is a global thought leader in philanthropy and the author of The DAF Revolution: Making a Difference in Our Modern World. With over three decades of nonprofit leadership, he served as CEO of CAF America and CAF Canada, overseeing $4.6 billion in charitable grants to organizations in over 135 countries. Through TEDHART.COM LLC, Ted advises foundations, corporations, and nonprofits on donor-advised funds, cross-border philanthropy, and ethical fundraising. He hosts The Nonprofit Coach and Everything DAF! podcast, the longest-running program in the nonprofit sector.
In This Episode
Why donor-advised funds outpace private foundations in charitable giving, granting 15-25% of assets annually versus the 5% foundation minimum, and how this benefits donors and nonprofits.
Donor-advised funds are revolutionizing philanthropic giving, and in this episode of The Nonprofit Counsel Podcast , host May Harris sits down with author Ted Hart to explore why. Ted's latest book, The DAF Revolution , unpacks how donor-advised funds have become the fastest-growing form of philanthropy ever, with over $250 billion in assets. They discuss the advantages DAFs offer over private foundations, including simplified charitable tax deductions and flexible grant making. Ted shares how to set up a donor-advised fund for tax benefits, addresses common criticisms, and reveals powerful nonprofit fundraising strategies to help organizations access DAF dollars, essential listening for donors, advisors, and nonprofit leaders.
Key Takeaways
Insightful moments and lessons from the conversation.
- Donor-advised funds reached $250 billion in assets, hitting their first $100 billion in just 30 years versus over a century for private foundations, making them the fastest-growing philanthropic giving vehicle.
- DAFs grant 15-25% of assets annually without payout requirements, while private foundations give only 5%, proving donors are more generous without government mandates and can focus on charitable giving based on values.
- Every nonprofit needs a DAF strategy: ten fundraising strategies include significant gift relationships and leveraging community foundations to access this growing funding source.
