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?