Grants awarded from donor-advised funds in the USA in fiscal 12 months 2018 totaled a file $23.42 billion, up 18.9 % from the $19.7 billion awarded in 2017, a report from the Nationwide Philanthropic Belief finds.
Primarily based on an evaluation of knowledge from IRS Type 990s filed by practically a thousand DAF-sponsoring charitable organizations, together with nationwide charities, neighborhood foundations, and single-issue entities, the thirteenth version of NPT’s Donor-Suggested Fund Report discovered that grantmaking by donor-advised funds to certified charities practically doubled over the previous 5 years, from $12.35 billion in 2014 to $23.42 billion in 2018.
The report discovered that whole DAF belongings obtainable for grantmaking elevated eight.three % on a year-over-year foundation in 2018, to an all-time excessive of $121.42 billion, whereas contributions to DAF accounts elevated 20.1 %, to a file $37.12 billion. The report additionally discovered that the variety of DAF accounts in the USA jumped 55.2 %, to 728,563, following a 60.2 % soar in 2017; that the common quantity held in a DAF account declined 30.2 %, to $166,653, following a 20.5 % drop in 2017; and that the common DAF payout price in 2018 declined barely, to 20.9 %, from 22.eight % in 2017. In keeping with the report, the rise within the variety of DAF accounts has been pushed largely by the introduction of DAF fashions that are inclined to haven’t any minimums, maintain present balances in money, and make smaller grants to charities.
The evaluation additionally discovered that variety of accounts on the fifty-four DAF-sponsoring nationwide charities within the pattern jumped 75 %, to 593,356, in 2018, whereas their mixed charitable belongings grew 22.6 %, to $72.35 billion, contributions elevated 24.1 %, to $23.38 billion, and grant dollars awarded jumped 26.eight %, to $13.1 billion; that the greater than 600 neighborhood foundations within the pattern collectively administered 77,234 donor-advised funds with mixed belongings totaling $33.87 billion, and that these funds noticed year-over-year will increase of 15.four % in contributions and 10.2 % in grant dollars awarded; and that the greater than 300 and thirty single-issue charities within the pattern administered 57,973 donor-advised fund accounts with mixed belongings totaling $15.19 billion, and that these funds noticed will increase of 11.7 % in contributions and 10.three % in grant dollars in 2018.
“That is the primary Donor-Suggested Fund Report that absolutely captures donors’ response to tax reform and its implications for charitable giving in December 2017, earlier than the brand new legal guidelines had been enacted,” stated Nationwide Philanthropic Belief president and CEO Eileen Heisman. “Contributions to donor-advised funds outpaced grants for the primary time in 4 years, which can point out donors selecting to ‘bunch’ their giving — basically pre-funding a number of years of charitable giving to make their philanthropy extra tax efficient. We are able to’t but predict a definitive trendline, however it’s clear DAFs are a philanthropic resolution that many donors selected in response to the brand new tax legal guidelines. Donors created extra particular person DAF accounts than ever earlier than and our report discovered file highs in each key metric.”