Donor Advised Funds Reach Record Highs
Thursday, 20th November 2014 at 9:37 am
Contributions to Donor-Advised Funds in the US have passed $17 billion in 2013 – a record breaking high according to the latest report from the National Philanthropic Trust.
The 2014 Donor-Advised Fund Report used 2013 data collected from 1,012 charitable organisations.
“This report demonstrates the rapid growth of donor-advised funds over the last several years,” President and CEO of NPT Eileen Heisman said.
“The total estimated charitable contributions in the United States in 2013 were $335.17 billion. Of those contributions, donor-advised fund accounts received $17.28 billion, or 5.2 percent of the total charitable giving for the year.
“This is an increase over the 4.3 percent noted in last year’s report and the 3.2 percent from the 2012 Donor-Advised Fund Report.
“In turn, grants to charitable organisations from donor-advised fund accounts totaled $9.66 billion. This is the third consecutive year that grants from donor-advised fund accounts total more than $8 billion.
“Last year’s total, now revised to include new donor-advised fund sponsors and reflect data from IRS Forms 990, is $8.58 billion, and the total for 2011 is $8.14 billion.”
A donor-advised fund, including community foundations, allows donors to establish and fund the account by making irrevocable, tax-deductible contributions to the charitable sponsor. Donors then recommend grants from those funds to other charitable organizations.Either there are no banners, they are disabled or none qualified for this location!
Highlights from this year’s report include:
Grants from donor-advised fund accounts to qualified charities are nearly $10 billion, reaching a record high of $9.66 billion.
Contributions to donor-advised fund accounts total more than 5 percent of all giving in the U.S.
Charitable assets in donor-advised fund accounts total over $50 billion for the first time—an increase of nearly 20 percent over the prior year.
There are now more than 217,000 donor-advised fund accounts. The growth rate of new accounts represents a 34 percent increase over the last seven years.
Contributions to donor-advised funds at Community Foundations grew 9.9 percent.
The report found that donor-advised funds have granted out more than 20 percent of their assets annually for the last seven years. The growth rates for contributions to and grants from donor-advised funds have been in the double digits for several years.
“Donors are actively using their donor-advised funds to support their favorite charities and causes, regardless of economic conditions” Heisman said.
“Every dollar in donor-advised fund accounts is destined for charitable organizations.
“These record highs are good news for charities, their beneficiaries and other donors who support them.”