What's Fueling Donor-Advised Funds (and What Does It Mean for Nonprofits)?

The exponential growth of donor-advised funds (DAFs) in recent years is an important trend that must not be overlooked.

Scholar Patrick M. Rooney suggests in a recent, comprehensive article three main reasons for the rapid rise of DAFs:

  1. Liquidity moments and timing
  2. After-tax effects and ease of donating now
  3. Permission for donors to be as public or as anonymous as they wish

Rooney, executive associate dean of the IU Lilly Family School of Philanthropy, also analyzes some of the concerns that have been raised regarding DAFs and what their expansion means for the broader nonprofit sector.

Click here for the full article from Nonprofit Quarterly.

This text is provided with the understanding that ECFA is not rendering legal, accounting, or other professional advice or service. Professional advice on specific issues should be sought from an accountant, lawyer, or other professional.


Follow @ecfa