6 Key Takeaways from the NPT 2023 DAF Report

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January 3, 2024 | 3 min read By:

Understanding the growing trend of donor-advised funds (DAFs) is crucial for nonprofits to expand their donor base and showcase their mission. The 2023 DAF Report from National Philanthropic Trust examined over 1,100 charities that sponsor or manage DAFs to gather insights to help inform fundraising strategies and offers an in-depth overview of the DAF landscape. DAFs play a crucial role in the philanthropic landscape and are a powerful tool for fundraisers to expand their donor base. With a better understanding of DAF trends, nonprofits can tap into these resources to make a lasting impact and drive meaningful change in their communities. The report is a valuable resource for navigating the world of DAFs and maximizing a nonprofit’s potential.

Here are six key takeaways from the 2023 DAF Report:

  1. GRANTS INCREASED. In 2022, grants from DAFs hit a record-breaking $52.16 billion–a 9% increase from 2021. This growth rate is slightly lower than in previous years but still demonstrates DAF donors’ continued generosity. Over the past five years, grants have more than doubled, increasing by an impressive 118.5%.
  2. CONTRIBUTIONS ROSE. Contributions to DAFs have been rapidly increasing, totaling an all-time high of $85.53 billion in 2022. This represents a 9% year-over-year increase, highlighting donors’ commitment to supporting meaningful causes. The compound annual growth rate for contributions from 2018 to 2022 is an impressive 23.6%, showcasing a continued upward trend in giving.
  3. ACCELERATED GIVING. While overall charitable giving in the U.S. declined in 2022, DAF donors actually gave more, recommending more grant dollars than ever before. Donors recognize the value and impact of DAFs and are utilizing them to support causes that are close to their hearts.
  4. RESILIENCE. The slight decrease in DAFs’ total charitable assets in 2022 can be attributed to the stock market drop. However, DAF assets still reached an impressive $228.89 billion, marking the second-highest value on record. This showcases the resilience and stability of DAFs as a giving vehicle, even in challenging economic times.
  5. ECONOMIC INDICATORS. Despite economic challenges, including stock market declines and less disposable personal income, individual DAF accounts increased by 2.9% in 2022. This demonstrates that donors continue to understand the importance of giving back and utilizing DAFs to support their giving.
  6. GROWING GRANTS. Grants from DAFs at Community Foundations reached $11.92 billion in 2022–a 27.1% increase from the previous year. DAF grants at Single-Issue Charities saw an 18.9% growth, totaling $5.59 billion in 2022. National Charities also played a significant role in grant payouts, contributing $34.65 billion to other qualified charities. This growth further showcases DAF donor’s continued generosity.

The 2023 DAF Report reinforces the importance, effectiveness, and growing potential of DAFs as a giving tool. The substantial growth in grants and contributions highlights donors’ generosity and commitment. The increase also serves as a reminder of the immense impact this charitable giving tool offers nonprofits. Fundraisers can leverage these insights to engage donors, showcase their impact, and tap into donor’s generosity and commitment. By understanding current trends and data, nonprofits can strategically position their organization to make a lasting impact and drive meaningful change in communities.

To learn more about The Blackbaud Giving Fund, visit blackbaudgivingfund.org, or follow the organization on LinkedIn, Facebook, and Instagram for updates, news, and more.