Grantmaking through donor-advised funds (DAFs) increased 60 percent compared to pre-pandemic 2019 and 400 percent over the past decade, an annual study from the National Philanthropic Trust (NPT) finds. 

The 12th edition of NPT’s Donor-Advised Fund Report detailed growth in all key DAF metrics during 2021 and found that the value of grants from DAFs to charities around the world increased 28.2 percent year-over-year to $45.74 billion, contributions to DAFs grew 46.6 percent to $72.67 billion, charitable assets increased 39.5 percent to $234.06 billion, the number of DAF accounts increased 27.6 percent, and the grantmaking payout rate grew to a record 27.3 percent. Contributions to DAF accounts totaled $72.67 billion in 2021, a 46.6 percent increase from $49.47 billion in 2020.

“Global events like COVID-19 and the vaccine distribution, calls for racial justice, political unrest, supply chain challenges and [their] impact on the economy, and [then] a steep increase in the U.S. financial markets were some factors that motivated DAF donors to support causes important to them,” said National Philanthropic Trust CEO Eileen Heisman. “This report notes the highest DAF payout rate on record. As well, it is remarkable to note that DAF grantmaking increased 400 percent during the past decade. Both points reaffirm DAF donors are actively supporting charities today and also can serve as sustainable sources of funding for the long term.” 

(Photo credit: Getty Images/Donald Gruener)