Grants to UK charities from Donor-Advised Funds reach record high, according to National Philanthropic Trust UK
The 2023 UK Donor-Advised Fund report, published by National Philanthropic Trust UK, shows contributions to DAFs have grown for a tenth consecutive year
LONDON, Dec. 11, 2023 /PRNewswire/ — The 2023 UK Donor Advised Fund Report, providing the most comprehensive set of data on the state of donor-advised funds (DAFs) in the UK, shows that grants from DAFs to charities rose by 21% in 2022 to £554.7 million.
It continues a long-term trend in the growth of DAFs. Contributions have increased for a tenth year in a row, with grants to charities growing at a compound annual growth rate of 15.6% in the last 5 years.
John Canady, CEO of NPT UK, said: “DAFs are an effective way for donors to manage their giving and are also used as an alternative to setting up a charitable trust or foundation. Every year we see more interest in DAFs from donors, their advisors, and the charitable sector more broadly.”
The report, compiled by NPT UK, underlines that DAFs are becoming well-established as giving vehicles for donors who want to support their favourite charities. The report examined data from 11 charities registered at the Charity Commission of England and Wales that provide DAFs. All providers witnessed growth in the market.
Canady continued: “This significant growth in 2022 reflects donors’ generosity in the face of increasing local and global needs. DAF donors have responded to needs precipitated by the war in Ukraine, the growing climate crisis, and the ongoing global economic uncertainty. In the UK we have seen donors recognise the huge pressure on charities caused by the cost-of-living crisis and respond accordingly.”
“Donors often consider contributions to a DAF as a charitable endowment that enables long-term giving, as well as responsive philanthropy. Since every pound in DAF accounts is destined for charitable organisations, their increasing popularity is good news for any charity that receive grants from DAFs.”
Key findings from the 2023 UK DAF report include:
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Grants from DAFs to other charities totalled £554.7 million, an 21% increase on the previous year.
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Contributions to DAFs totalled £868.5 million, a 37% increase on the previous year.
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Charitable assets in DAFs total £2.5 billion, a 12% on the previous year.
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The aggregate grant payout rate from DAFs was 24.7% in 2022.
The full 2023 DAF Report can be viewed here.
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