It’s a continuing debate with foundation management: What are we going to do with our DAF?
Do you grow this area with time and resources? And if so, are the risks finally being offset by a greater return at the foundation level?
There is no denying that Donor Advised Fund programs are popular and donors are opening accounts at unprecedented rates. According to the most recent Giving USA data, a handful of commercial funds are achieving growth rates approaching 77%. While this growth is impressive, the adoption or expansion of DAF programs can be risky for foundations, particularly given that such programs haven’t traditionally generated immediate impact for the host foundation.
These concerns are heightened by the growing trends in social media, online engagement and eCommerce, where donors have come to expect a more interactive online experience for their charitable giving.