From my conversations with donors, I know that they often grant much more than they initially intended or thought they would be able to, thanks to this same investment growth. It’s a model that offers the best of both worlds when it comes to supporting your favorite charities. You can continue to give on a regular basis while still having additional funds available for a larger gift, or a special project, or an unexpected event, like a hurricane or pandemic.
 

DAFs fill what had been a gap in the philanthropic landscape. The popularity of DAFs among donors and the positive impact DAFs have on nonprofits and their constituents speak to the importance of this giving tool. By prompting donors to think of their giving as an ongoing commitment, DAFs challenge us to be more generous, more creative, and more impactful. The entire charitable sector benefits as a result—both today and tomorrow.

But DAFs don’t just help respond to disasters. Evidence shows they can also be a stabilizing force to the philanthropic world during economic downturns.¹ Because DAF advisors have already designated funds for charity, they can respond more easily than other sources of giving, which tend to dry up during recessions. It’s this upfront commitment to charity—not just to giving, but to long-term, sustainable support—that sets DAFs and their donors apart.
 

And once the charitable funds have been committed, we immediately set them to work. Our donors choose from Vanguard Charitable’s diversified lineup of high-quality, low-cost investment options, which have driven tremendous returns on charitable investments in recent years.² One study concluded that DAFs created more than $5 billion in new charitable dollars from 2015-2019 due to their ability to grow charitable investments tax-free.³

It's this upfront commitment to charity—not just to giving, but to long-term, sustainable support—that sets DAFs and their donors apart.

Case study: The dual benefits of complex asset donations