Seven in ten nonprofits obtain grants from donor-advised funds

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Though seven in ten nonprofits have obtained a grant from a donor-advised fund (DAF) prior to now three years, destructive perceptions of and confusion about DAFs stay, a report from the Indiana College Lilly Household College of Philanthropy at IUPUI finds.

Based mostly on a survey of almost 4 hundred and fifty nonprofits, the Schwab Charitable-funded report, Nonprofits and Donor-Suggested Funds: Perceptions and Potential Impacts (48 pages, PDF), discovered that 58 % of respondents had obtained a grant from a DAF in 2019, up from 46.6 % in 2018 and 50.three % in 2017. And to this point in 2020, 33.9 % had obtained a grant from a DAF, with almost 9 in ten (87 %) of respondents that had solicited grants from donor-advised funds prior to now three years having obtained one, as had 42 % of organizations that had not actively solicited DAFs. The survey additionally discovered that 52 % of organizations that had obtained a grant from a DAF and 30 % of those who had not noticed the bigger grant quantities usually awarded by DAFs as a optimistic issue, whereas 65 % of recipient organizations and 47 % of non-recipients noticed the power to succeed in rich donors as a bonus of DAFs.

In accordance with the survey, respondents whose nonprofit had obtained a DAF grant within the final three years had been extra seemingly than non-recipients to specific optimistic views about soliciting DAFs and the executive burden of processing these grants (20 % vs. 7 %). On the identical time, greater than 60 % of respondents indicated having some degree of concern with the dearth of donor contact, whereas greater than half cited considerations about unclear donor requests. In accordance with the report, 52 % of DAF recipient organizations had obtained an nameless grant, whereas 31.9 % of respondents expressed concern over transparency points.

“As the recognition of DAFs continues to develop, the challenges nonprofits face when working with DAFs will proceed to be an vital dialog within the philanthropic sector,” the report’s authors conclude. “With the political, social, and financial crises and modifications which have inundated 2020, it’s extremely seemingly that the fundraising panorama and the nonprofit sector total will likely be completely affected. DAFs will seemingly proceed to play an more and more vital function in nonprofits fundraising going ahead.”

(Photograph credit score: GettyImages)

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