Donor Advised Funds Can Be Nutritious
September 15, 2016 The NonProfit Times
Cronuts and rolled ice cream are current trends in food, but when it comes to charitable giving, donor-advised funds are the next big thing. It’s no secret why: immediate tax breaks, investing for the growth of charitable assets, and the ability to sustain giving through retirement all make donor-advised funds sound tasty to donors.
But, what is your organization doing to get a piece of the tasty delights?
Amy Pirozzolo, vice president of marketing at Fidelity Charitable, recently led a session at the Bridge to Integrated Marketing & Fundraising Conference in National Harbor, Md., titled “Demystifying National Donor Advised Funds.” She gave a closer look as to who is giving when, where, and how much across the country:
- If you’re hesitant regarding getting your organization is hesitant to get involved with donor-advised funds, keep in mind that they now outnumber foundations 3:1 and are growing rapidly each year.
- Fidelity Charitable is now the country’s second largest grant marker. Grant dollars have tripled, and are now supporting double the number of nonprofits compared to 10 years ago. Most donors (85%) give to six or more charities.
- Donors creating donor-advised funds seek to maximize the benefits of giving, financially and strategically. Some 90% use the funds to realize an immediate tax deduction for charitable giving and 69% want to better organize and keep record of their giving.
- Giving patterns from DAFs mirror national trends, with education and religion as the top charitable sectors.
- Donors tend to give strategically, actively, using numerous methods, and primarily within their communities.