How Many Donor-Advised Funds Are There?
Discover the growth and impact of donor-advised funds, regulatory changes, and future projections.
As donor-advised funds (DAFs) gain popularity among modern philanthropists, understanding their prevalence and impact becomes increasingly important. By 2023, DAFs have experienced significant growth, driven by technological advancements and evolving donor preferences.
The Rise of Donor-Advised Funds: A Statistical Overview
The National Philanthropic Trust’s 2023 DAF Report reveals impressive figures for donor-advised funds in the United States. As of 2023, there were 1,948,545 DAF accounts, holding $228.89 billion in charitable assets. Contributions to DAFs totaled $85.53 billion, while grants from DAFs amounted to $52.16 billion [1]. These statistics highlight the growing appeal of DAFs as a flexible and tax-efficient method for charitable giving.
Factors Driving DAF Adoption and Endaoment’s Unique Position
Several factors contribute to the rising number of DAFs, including immediate tax deductions, flexibility in grant-making, ability to donate complex assets, low entry barriers, and user-friendly online platforms.
Endaoment distinguishes itself by leveraging blockchain technology for the creation of DAFs. As a community foundation, Endaoment accepts various donation types, including cryptocurrencies, stocks, and fiat currencies, making it a versatile option for modern donors.
Regulatory Landscape and Future Projections
The regulatory environment for DAFs is evolving. In November 2023, the IRS proposed new regulations that could impact how DAFs operate [2]. These regulatory changes are relevant to the discussion of DAF numbers as they can influence the creation of new DAFs and alter frameworks for existing ones. Despite potential regulatory shifts, experts anticipate continued growth in the number of DAFs, driven by factors such as increased digital giving, engagement from younger generations, the rise of corporate DAFs, and international expansion of the DAF model.
Major DAF Providers and Growth Over Time
The DAF landscape features several prominent players, including Fidelity Charitable (the largest provider), Schwab Charitable, Vanguard Charitable, and National Philanthropic Trust. Community foundations, including Endaoment, collectively manage thousands of DAF accounts and play a significant role in this ecosystem.
The growth of DAF accounts over time has been remarkable:
| Year | Number of DAF Accounts |
|---|---|
| 2010 | ~180,000 |
| 2015 | >270,000 |
| 2020 | >1,000,000 |
| 2023 | >1,900,000 |
This data showcases the increasing appeal of DAFs as a charitable giving vehicle [1]. Endaoment, as an innovative community foundation, stands out as a unique option for tech-savvy donors and cryptocurrency holders looking to participate in this growing trend.
Ready to join the growing number of donor-advised fund holders? Create your own DAF with Endaoment today and experience the benefits of blockchain-powered philanthropy. For more information or to schedule a demo, contact our team.
Citations
[1] National Philanthropic Trust. (2023). 2023 DAF Report. https://www.nptrust.org/reports/daf-report/
[2] Internal Revenue Service. (2023). Proposed Regulations on Donor Advised Funds. https://www.irs.gov/pub/irs-drop/reg-142360-20.pdf