Donor-advised funds becoming popular vehicles for giving
November 15, 2012
A recently released National Philanthropic Trust (NPT) report found donor-advised funds are experiencing significant growth as they are becoming more popular charitable-giving vehicle. The study found that more than 3 percent of all charitable contributions go through these channels, totaling $37 billion in 2012.
The popularity of donor-advised funds has even surpassed pre-recession levels, surging past the 2007 totals of $30.59 billion. These gains are likely owed to an increase in the number of accounts, as charitable contributors realize these are convenient and flexible ways to allocate funds to their favorite causes and nonprofits organizations.
"Donor-advised funds have reached record highs because they are easy to start and use. They enable donors to focus on their philanthropic goals rather than paperwork, board minutes, audits and tax filings," said Eileen Heisman, president and CEO of the National Philanthropic Trust. "Additionally, there is an increasing awareness of this giving vehicle's functionality and flexibility."
Individuals and organizations that are providing funds for multiple nonprofit programs might find it easier to manage their large-scale efforts with fundraising management
programs that can account for funds as they are disbursed to recipients.