Credit score: DAF Analysis Collaborative
The Donor Suggested Fund Analysis Collaborative (DAFRC) has launched a complete examine that improves the general public understanding of donor suggested funds and solutions among the discipline’s most urgent questions surrounding this comparatively new giving car.
The 2024 Nationwide Examine on Donor Suggested Funds is the most important impartial examine on donor suggested funds to this point, encompassing 9 years of knowledge and particulars on greater than 50,000 accounts.
The total report is out there right here.
The 2024 Nationwide Examine on Donor Suggested Funds consists of details about DAFs from 2014 to 2022, masking account dimension, age, kind, succession plan, donor demographics, contributions, grants, payout charges and grantmaking velocity. To assist full this examine, 111 DAF packages voluntarily offered anonymized information to the analysis crew, representing over 600,000 inbound contributions to DAFS and greater than 2.25 million outbound grants from DAFs.
“The Nationwide Examine on Donor Suggested Funds is an important early step in persevering with to enhance the follow and understanding of DAFs for the long run,” stated Dan Heist, Principal Investigator for the DAFRC and Assistant Professor at Brigham Younger College.
“DAFs make it simpler for on a regular basis donors to present in methods which can be significant to them, so the exponential progress of DAFs we’ve seen in the previous couple of years is probably going going to proceed. It will be significant that the philanthropic neighborhood has a stable proof base to maximise this essential giving car.” stated Danielle Vance-McMullen, Principal Investigator for the DAFRC and Assistant Professor at DePaul College
WHY THIS MATTERS:
The information and findings offered on this report assist to reply most of the discipline’s most crucial questions on DAFs—whereas highlighting the significance of acquiring and using good information to tell the follow of philanthropy via DAFs and the general public discourse round DAFs.
DAFs are simpler and more cost effective to ascertain and preserve than different philanthropic autos, making it simpler for on a regular basis Individuals to be charitable and provides in methods significant to them.
The Nationwide Examine on DAFs offers new insights into the three commonest kinds of DAF sponsors: Nationals, Group Foundations, and Religiously-Affiliated Organizations.
DIVING DEEPER INTO KEY FINDINGS:
- Almost half of all DAFs (49%) had complete property on the finish of 2021 of lower than $50,000.
- Solely 7% of DAFs had balances of $1 million or extra
- Only one% had a steadiness over $10 million.
- DAFs are a comparatively younger philanthropic car, with elevated use lately (81% of DAF accounts within the examine have been opened after 2010).
- Most DAF accounts (97%) have been suggested by people or households. Organizations suggested solely 3% of DAFs within the examine.
- Members of the Child Boomer technology represented practically half (49%) of all advisors.
- Nearly all DAFs (92%) have a succession plan in place that establishes what group or advisors obtain management of the funds after the unique donors are now not dwelling.
- Roughly 30% of DAFs designate the sponsor or one other nonprofit group to obtain the remaining funds.
- Roughly 61% of all DAFs had a number of contributions into the DAF through the examine interval.
- One in 9 had contributions yearly.
- DAFs are a mid-range philanthropic car choice for donors.
- DAFs generally acquired contributions between $10,000 and $49,999. About 40% of contributions have been on this vary.
- In the latest three-year interval, 78% of accounts made at the least one grant.
- In a mean yr, practically two-thirds of accounts (63%) made an outbound grant whereas over one-third (37%) didn’t.
- Grantmaking from DAFs is unfold comparatively evenly all year long—solely 32% of grant funding happens within the fourth quarter.
- In distinction, the fourth quarter of the yr accounts for 57% of all funds contributed into DAFs.
- Since DAF contributions and grants can fluctuate yearly, this examine presents a three-year common to offer a extra correct depiction of every DAF account’s exercise.
- The median payout fee for all accounts is 9%. The median for all accounts that make grants (eradicating inactive accounts) is 15%. The imply (common) payout fee for all DAF accounts is eighteen%.
- Simply over half of all DAFs (54%) granted out greater than half of their unique contribution inside three years.
- Roughly 22% of DAFs have been inactive or had a zero payout fee for the three most up-to-date years included within the examine (2020-2022).
- When wanting extra carefully at inactive DAFs, they have been each smaller and newer (extra just lately established) than energetic DAFs. Nearly half (45%) of inactive DAFs have been opened in 2020 or later.
Supply: The Donor Suggested Fund Analysis Collaborative
The previous press launch was offered by an organization unaffiliated with NonProfit PRO. The views expressed inside don’t immediately mirror the ideas or opinions of the employees of NonProfit PRO.