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Americans are giving more to charity than ever before, according to a new report from the National Philanthropic Trust.
In its 2023 Donor-Advised Fund Report, the trust found that nearly 2 million individuals have set up DAFs, or donor-advised funds, and that those accounts held more than $228 billion in assets.
That's more than double the growth of foundations, and more than double the growth in grants from DAFs, which have increased every year since 2009 and more than doubled in the past five years.
One of the main reasons for the trend is the tax benefits of DAFs, which, unlike foundations, require one to open an account with a sponsoring organization, contribute assets, and make grants to various charities.
There's no minimum yearly distribution requirement, so donors can allow their assets to grow as they wish and then donate when compelled or when the need arises, such as a natural disaster or mass casualty event.
The report also found that the number of individual DAF accounts rose 2.9% from 1,893,762 in 2021 to 1,948,545 in 2022.
And grants from DAFs increased 9% to $52.16 billion, a new high for grant dollars, which have increased every year since 2009 and more than doubled in the past five years.
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