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:
Liquidity moments and timing
After-tax effects and ease of donating now
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.