Donor Advised Funds in the US: Market Analysis

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Donor Advised Funds in the US: Market Analysis

Over the years, the trend for donor-advised funds (DAFs) in the U.S. shows a decline in charities that sponsor DAFs. From 2014 to 2017, the number of sponsors for donor-advised funds dropped from 1,012 to 979. However, reports show consistent increases in grants provided by DAFs accounts, contributions made to these accounts, and overall growth in individual DAFs accounts. Detailed information on these reports can be found below.

2014 REPORT

In 2014, the total number of charities that sponsored DAFs was 1,012. This number comprised national charities, community foundations, and single-issue charities. National charities are national organizations that are either independent or commercially-affiliated. Examples of national charities include National Philanthropic Trust, Fidelity Charitable Gift Fund, and Renaissance Charitable Foundation. Community foundations are region-focused organizations. Examples of community foundations include the Cleveland Foundation, the Delaware Community Foundation, and the Community Foundation of the Ozarks. Single-issue charities are organizations focused on a specific faith, issue, cause, or institution. Examples of single-issue charities include the Jewish Federation of Rhode Island, the San Diego Human Dignity Foundation, and Stanford University.

The number of DAFs sponsors vary by state, with California, Michigan, Indiana, Ohio, Pennsylvania, and New York having the most DAFs sponsors (40 or more).

According to the data from 2014, there were 43 national charities, 606 community foundations, and 363 single-issue charities that sponsored DAFs, adding up to a total of 1,012. Using data compiled from 2013, this report shows the total number of charitable assets for national charities was $24.82 billion across 112,170 DAFs accounts. The community foundations had $20.75 billion in charitable assets across 62,200 DAFs accounts, and single-issue charities had assets totaling to $8.16 billion over 42,677 DAFs accounts.

Compared to 2011, the number of DAFs accounts increased by 5.7% in 2013. The total number of grants received from DAFs accounts grew by 12.6% compared to 2012, reaching a total of $9.66 billion. The total number of contributions made to these accounts increased by 23.5%, totaling $17.28 billion. The total number of DAFs accounts also increased by 5.7% from 2013.

2015 REPORT

In 2015, the total number of charities that sponsor DAFs was 1,016. As with the data collected for 2014, this number comprised national charities, community foundations, and single-issue charities. According to the data compiled from 2015, there were 48 national charities, 608 community foundations, and 360 single-issue charities that sponsored DAFs, adding up to a total of 1,016. Using data compiled from 2014, national charities reported $32.90 billion in total charitable assets across 128,195 accounts, community foundations had $27.54 billion across 65,549 accounts, and single-issue charities had $10.26 billion across 44,550 accounts.

Compared to 2013, the number of grants received from DAFs accounts grew by 27%, and contributions made to these accounts peaked at $19.66 billion, showing a growth of 14.1%.

2016 REPORT

In 2016, the total number of charities that sponsor DAFs was 1,016. This number comprised 48 national charities, 608 community foundations, and 360 single-issue charities that sponsored DAFs, adding up to a total of 1,016. According to data collected from 2015 that was used for the 2016 report, national charities reported $38.83 billion in total charitable assets over 153,871 DAFs accounts, community foundations reported $28.70 billion in assets over 68,168 accounts, and single-issue charities reported $11.11 billion in assets across 47,141 accounts.

Compared to 2014 data, the number of grants received from DAFs sponsors grew 16.9%, and total contributions reached an all-time high at $22.26 billion, a growth of 11.4% from 2014.

2017 REPORT

Currently, there are about 1.2 million public charities that are registered in the U.S. Of these organizations, the 979 charities that sponsor DAFs make up less than 0.001% with 285,000 individual DAFs, based on data collected from national charities, community foundations, and single-issue charities. National charities make up 49 of the total number of DAFs sponsors, community foundations make up 594, and single-issue charities make up 336, giving a total of 979.

According to data collected from 2016, grants received from DAFs accounts reached an all-time high at $15.75 billion, an increase of 10.4% when compared to 2015. Contributions made to these accounts reached $85.15 billion, showing a growth of 9.7%. The number of individual DAFs accounts increased by 6.9%, reaching a total of 284,965.

CONCLUSION

To conclude, although the number of charities who support DAFs accounts has shown a decline in recent years, the decline is insignificant. Reports also show an overall increase in grants received by these accounts, contributions made to these accounts, and individual DAFs accounts.
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