Dear development professionals and other citizens interested in raising money, make no mistake, there are Donor Advised Funds (DAFs) sitting on a lot of cash right now. There has been a huge increase in DAFS since 2008, and they are not going away anytime soon. So how do we as fundraising professionals deal with this phenomenon?

Grantmaking from DAFs has slowed since 2008 – by a lot! Payout rates from DAFs have been declining slowly every year, from 2008 (20% of assets) through 2013 (14% of assets).  DAFs are not subject to excise taxes, payout rules or disclosure agreements, like private foundations. Even worse, no federal law requires that those funds ever be distributed to charity! Call your Congressperson to object, since donors get to take that tax exemption once they put their money into the DAF. It could be decades before those dollars ever find their way to a charity. Continue reading “DAF = DONOR ADVISED FUNDS OR DIFFICULT ASSET FINDING?”