Donor-advised funds (DAFs) are a popular philanthropic tool, but do you know all that your DAF can do?
With so many benefits and opportunities to increase charitable impact, DAFs are the fastest-growing vehicle of philanthropic giving. We answered six frequently asked questions to highlight how you can make the most out of giving through your DAF:
A: Of course! This is one of the common misconceptions about DAFs. These funds often partner with intermediary organizations like GlobalGiving, which are registered charitable entities in the United States, to send grants to trusted charities abroad. Giving through an intermediary provides an added layer of security for the donor and a quick and easy way to give to your favorite causes anywhere in the world. Your DAF can give to a foreign charity and have a global reach.
A: DAFs, like any other monetary donation, are powerful tools for quickly providing support after disasters. For example, GlobalGiving’s approach to disaster response helps donors safely and effectively move funds to vetted local nonprofits that are responding to a crisis. Contributions from DAFs give nonprofits the flexibility to allocate funds where they are needed most.
A: Yes, and contributions to a DAF are irrevocable and can be used only for charitable purposes. Here are some types of contributions, according to the National Philanthropic Trust:
A: Contributions can offer several benefits, like these that Fidelity Charitable identified:
A: Definitely. DAFs have been on the rise in the philanthropic sector for more than a decade, with the number of accounts surpassing 1 million for the first time in 2021 and the amount of funds held in DAFs growing to $159 billion. Individuals have been, and will continue to be, the largest source of charitable giving. DAFs can boost their impact. By leveraging high-impact financial interdmediaries, such as GlobalGiving, your fund can be a responsive resource for changemaking nonprofits around the globe. And what’s more important than making an impact?
A: Holly Belkot, GlobalGiving’s Manager of Strategic Giving, would love to share what a DAF can do through GlobalGiving!
Ready to give to a GlobalGiving partner through your DAF?
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