November 13, 2019
By Jack Doyle, Amergent President & CEO
The newest report was published this week from the gold standard for DAF (Donor-Advised Fund) information. You can read it here.
They analyzed over 1,000 DAF charitable sponsors and community foundations; nearly all of the same organizations were also included in last year’s report, so we have a comprehensive comparison for net gains in the last year. The data they reported on was gleaned from 50+ national charitable sponsors (i.e. Fidelity, Schwab, Vanguard, etc.), 600+ community foundations, and 330+ single-issue charities (private label DAF i.e. The Nature Conservancy, UJA Federation, etc.).
Remember year-end 2018, when higher levels of income weren’t coming? And the stock market was tanking so appreciated stocks weren’t worth what they had been?
It’s clear to me, from what I see in this report, that the tax law change clearly had an impact on the charitable giving plans of the above-average donors.
Some made tax planning decisions when the tax law changes were announced at the end of 2017 and deposits into DAF accounts increased (appreciated stocks were attractive as gifts). At the end of 2018, when appreciated stocks weren’t as valuable, the amount of deposits into DAF accounts went up by 20% – in my humble opinion, because of the tax changes for a 2nd year in a row.
The total amount of funds designated for charitable giving in the DAF world at the start of 2019 exceeded $120,000,000,000.
The biggest rate of change is occurring in the number of individual Donor-Advised Fund accounts. For the second year in a row, there was growth above 50 percent in the number of new Donor-Advised Fund accounts.
Please talk with us about all the ways you can be inspiring DAF donors to give more to you.