There continues to be growing interest in better connecting Donor Advised Funds (DAFs) with deep, impact investing opportunities. While we have some promising examples, few are talking about the changes that could really build this market. More shared data, more donor awareness, and practical tweaks to way DAFs engage with their donors could all boost the flow of DAF capital to impact investments.
There is growing interest from donors and investors to better align their resources, including their philanthropic resources, with their values. Donor Advised Funds, now housing more than $85 billion, represent a huge untapped potential to immediately put resources to work to improve the world. But many donors are not yet aware of or engaged in impact investing with their DAFs.
Hear some exciting ideas and insights from 10 leading experts I spoke with for this column.
Today, 1 in 10 dollars given to charity actually goes to Donor Advised Funds. That's billions - earmarked for nonprofits - potentially stuck on the sideline. How can donors ensure their DAF benefits — and does not detract from — the critical work of great nonprofits and populations they serve?
Progressive donors passionate about social change are understandably drawn to the political and policy arena. But there are also worthy nonpolitical strategies for donors seeking to leverage their resources for an outsized impact. One strategy is to support efforts to reform major corporations, prioritizing systems-level change approaches that can transform entire industries or harness the power of global markets for social good. This space is ripe with opportunity and skilled nonprofits are showing us how to build real influence and pioneer tools to elevate industry standards.
Part II of this series introduces opportunities for donors to support meaningful social change initiatives at the state level. Progressive donors must also continue to move beyond election-cycle funding of candidates, and invest in systemic state level initiatives that expand voting rights, educate, register, and mobilize voters, and champion progressive policy ideas.
This series introduces three strategic approaches for emerging and established progressive donors in the Trump era, especially for individual philanthropists with the capacity to give big. Part I makes the case for bolstering frontline organizations with proven tactics while also supporting upstart organizations and building enduring capabilities and infrastructure for the progressive movement.