Philanthropy

Donor-Advised Fund Grants Rise, Total Assets Overtake $1.0 Billion Mark

Tom Burroughes Group Editor London 21 November 2017

Donor-Advised Fund Grants Rise, Total Assets Overtake $1.0 Billion Mark

Donor-advised funds, which comprise a big market in the US, are developing momentum in the UK.

Grants from UK donor-advised fund accounts to charities in the 12 months to the end of March this year rose 1.41 per cent from the same period a year earlier to stand at £276.7 million ($366. million), according to figures about a form of philanthropy that has echoes of the much larger DAF sector in the US.  

Total assets for making grants rose to £1.1 billion, up 7.6 per cent year-on-year. Contributions to DAFs rose by 22.5 per cent to £353.6 million, according to the 2017 UK Donor-Advised Fund Report, produced by NPT UK, which is affiliated to National Philanthropic Trust in the US. 

“Looking forward, we predict this growth trend will continue. Advisors are increasingly aware of these types of charitable giving vehicles and integrating them into their client planning. Donors appreciate that they can give globally with confidence that the DAF sponsor is handling all the due diligence and compliance. And donors appreciate the privacy that the donor-advised fund provides,” John Canady, CEO of NPT-UK, said. 

DAFs are a charitable savings account. Donors make contributions to their fund, receive immediate tax relief, and make grants to their favourite charities over time.

NPT-UK is a UK/US dual qualified charity. The US body has raised $8 billion in charitable contributions and manages $4.6 billion in charitable assets.

DAFs are already a large sector in the US. According to NPT’s examination of figures for the 2016 financial year, grants from donor-advised funds to qualified charities totalled an estimated $15.75 billion, up 10.4 per cent from the previous year.

 

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