Donor Advised Funds Increase Giving During Pandemic
By Nick Kulik, CFRE
Chief Donor Engagement Officer
I recently read an article about an increase in donor advised fund grantmaking during the coronavirus pandemic. This article showed the national trends in grantmaking, so I was inspired to share the local impact of DAFs at The Community Foundation.
A DAF is a flexible fund established by individuals, families, businesses, or groups to facilitate charitable giving. The founding donor(s) serve as the fund advisor and can recommend grants to 501(c)3 nonprofit organizations. The Community Foundation is the only Hancock County-based organization offering this option for community members. Last year, Foundation DAF advisors recommended more than $1.2 million in grants.
The coronavirus has caused concern for individuals, families and nonprofits in our community. As essential businesses, nonprofits have increased services with limited resources due to the cancelation of fundraisers and decreasing revenue.
The DAF advisors at the Foundation stepped up to support these local organizations during the pandemic. Since Governor DeWine’s Stay-at-Home order on March 23, more than $297,000 in DAF grants have been recommended, bringing the total for 2020 to more than $590,000. This has been a powerful tool for supporting nonprofits during this recovery phase.
With the prudent guidance of our Finance and Investment Committee volunteers, our DAF advisors had funds available to recommend grants at a time when our community needed it most. Donor advised funds allow these advisors to support nonprofits, churches and other organizations in need of cash while keeping assets impacted by the economic slowdown secure.
A global pandemic is not an appropriate time to discuss charitable giving with clients. Instead, we wanted to demonstrate the impact these funds having in supporting recovery efforts. If you are working on client planning and are interested in learning more about our DAF options, contact me.
