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