In June, the annual Giving USA Report was issued, reporting that total Charitable Giving in 2023 increased to $557.16 billion, an increase of 1.9 percent over 2022. Unfortunately, when adjusted for inflation, the total decline was 2.1 percent. This follows a decline of 3.4 percent in 2022 in current dollars, which was a decline of 10.5 percent adjusted for inflation. So, overall, charitable giving in the past two years has not been growing.  

Giving by individuals continues to provide the preponderance of giving. At $374.4 billion, individual giving is 67 percent of the total, and when you add in bequests from individuals, it is 75 percent of the total. Giving by Foundations was 19 percent of the total, and corporations 7 percent.  

The Giving USA Report includes a relatively new chapter reporting on giving by and to donor advised funds (DAFs). The report indicates that grants made from DAFs in 2022 totaled $52.16 Billion, an increase of 9.1 percent over the preceding year. During this same time, the approximately 300 donor advised funds here at your Community Foundation increased grants by 20 percent to $3.2 Million in 2022. Donor Advised Fund Giving is one of the most positive trends in charitable giving.  

A study was also done for the first time, “The 2024 DAF Fundraising Report-The Inaugural Benchmark Study on Nonprofit Fundraising from Donor Advised Funds”. The study utilized data from 20 larger nonprofits with 34,498 donors who gave to them via their DAF. A key finding from the study was that once donors began giving via their DAF, their giving to the organization increased, on average, 96 percent. For example, if a donor had given a $1,000 gift by credit card previously, their gift from their DAF would be nearly $2,000 per year after.  

Some people criticize DAFs as a way for the wealthy to get an immediate tax deduction but not have to make an immediate grant from their fund to their charities of choice. They often characterize this as hoarding their charitable giving. Organizations like your Community Foundation, which work with community members who have DAFs, realize that DAFs are to charitable giving what 401(k)s are to retirement or Health Savings Accounts are to healthcare expenses. They are dedicated sources for charitable giving, and as this study found, having this dedicated source enhances the generosity of donors. Again, donor advised fund giving is one of the most positive trends in charitable giving. Call or email (https://www.thcf.org/about/contact-us) the staff at your community foundation today to learn how you can do more with your giving with a DAF.