The value of donor-advised fund (DAF) grantmaking to charitable organizations in 2023 remained flat year-over-year at $54.77 billion while contributions to DAFs decreased 21.7 percent to $59.43 billion, according to a report by the National Philanthropic Trust (NPT).

Based on data from 1,140 charitable sponsors that reported assets in any year from 2019 through 2023, the 2024 Donor-Advised Fund Report found that the decrease in contributions to DAFs followed two years after the sharpest increase on record in 2021, which was attributable to donor response to urgent needs created by the coronavirus pandemic. In 2023, DAFs continued to be one of the most consistent funding sources for charities, the report found, despite economic and financial market headwinds. The grant payout rate (a calculation of grantmaking dollars from DAFs to charities relative to total DAF charitable assets) remained steady at 23.9 percent in 2023, compared to 24.1 percent in 2022. The aggregate DAF grant payout rate has exceeded 20 percent for every year on record.

“The 2024 DAF Report affirms DAFs help stabilize the philanthropic ecosystem when outside influences impact giving patterns,” said NPT chief executive Holly Welch Stubbing. “While individual charitable giving decreased according to GivingUSA, grantmaking from DAFs to charitable organizations remained a sustainable source for good. DAF grantmaking ultimately helped many charitable organizations fulfill their missions, and some expand their reach, during periods of economic volatility. The 18th annual report data underscores DAF donors continue to give, sometimes despite what economic sentiment may be.”

(Photo credit: Getty Images/Wasan Tita)