{Centered}: June 2013 (Vol. 6, No. 6) - publication of the Grantmanship Center
Donor-advised funds enable individuals to make donations to sponsoring 501(c)(3) organizations that invest these assets and then make grants to charities based upon the recommendations of the donors. Collectively these funds now hold over $32 billion in assets, reports Sarah Frostenson ("Donor-Advised Funds Keep Up Rapid Growth, The Chronicle of Philanthropy, May 23, 2013). Their assets grew by almost 20% from 2011 to 2012 and have surpassed their pre-recession asset levels by nearly a third, far outstripping most nonprofits and most foundations. They made almost $6 billion in grants in 2012 (up 7.4% from 2011).
Donor-advised funds don't operate under the same regulatory restrictions as private foundations, and they generally don't accept proposals. This makes it difficult to request grants from them if you don't have a personal connection to the donor. But DAF Direct, a new tool you can add to your organization's website, can help you connect with these funds, says Holly Hall ("Tool for Charity Web Sites Makes it Easy to Contribute to Donor-Advised Funds," The Chronicle of Philanthropy, April 25, 2013). With DAF Direct, a potential donor who has established an account with a donor-advised fund can select that fund from a menu and indicate the amount and purpose of the grant they wish to make to you. This information then goes to the donor-advised fund so the grant can be made. Charities are reporting early success with DAF Direct: the donations are larger than the typical credit-card gift - without the credit card fees.
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