Donor-advised fund generosity increases with time: Vanguard Charitable

Donor-advised fund generosity increases with time: Vanguard Charitable
Donors who have had their accounts for 10 years or more last year issued grants that were 61% larger on average than those from donors with a tenure of six years or less. 
MAY 01, 2023

A study of donor-advised funds shows that time matters too.

According to donor-advised fund sponsor Vanguard Charitable’s survey, established DAF donors give more, and more consistently, on an annual basis than new DAF donors. Results of the report, "Why Giving Matters," suggest that opening a DAF leads to more effective giving practices over time.

The study showed that 71% of donors who have had their accounts for 10 years or more give in larger amounts as a result of their DAF, and 68% agree they give more consistently to their favorite charities with their DAF. The report also showed that accounts with at least 10 years of tenure give significant amounts to grantees on an annual basis, about $17,000 more on average in 2022 than accounts with tenures of six years or less.

"We are so inspired by our donors’ continued generosity," Rebecca Moffett, president of Vanguard Charitable, said in a statement. "The trends we see here reinforce the exponential impact DAFs have on nonprofits the longer an account is active.”

Moffett added that donors indicate their strong charitable commitment when they open a DAF, and that commitment is refined over time.

Across all tenure groups, the study revealed that more than two-thirds of DAF donors reported giving more effectively because of their donor-advised fund. That said, donors who have had their accounts for 10 years or more issued grants that were 61% larger on average in 2022 than grants from donors with a tenure of six years or less. 

Renae Ransdell, a wealth advisor at SageView Advisory Group, says that charitably inclined individuals are going to give regardless of the tax benefits. However, most prefer to give in a tax-efficient manner if that's an option.

“For our clients, donor-advised funds are a meaningful resource to fulfill their charitable goals while realizing some tax benefits," she said. "Once funded, their DAF takes the pressure off tax planning, allowing clients to focus on the causes important to them and advise on how those assets are directed.”

Latest News

Tocqueville Asset Management expands business with $1.3B AUM acquisition
Tocqueville Asset Management expands business with $1.3B AUM acquisition

The 40-year-old independent investment partnership picks up high caliber team.

New York RIA, former rep combined $225K by SEC for breaching fiduciary duties
New York RIA, former rep combined $225K by SEC for breaching fiduciary duties

Elderly clients impacted in transfers to higher-fee advisory accounts.

Do we need a new word for retirement as fewer people give up work?
Do we need a new word for retirement as fewer people give up work?

Another study highlights the oversized share of older Americans still working.

Investors' risk-on appetite reaches 15-year high
Investors' risk-on appetite reaches 15-year high

BofA survey reveals bullish sentiment.

World's first catastrophe bond launched by ex-Pimco exec
World's first catastrophe bond launched by ex-Pimco exec

Rick Pagnini wants to demystify cat bond investments.

SPONSORED Record growth: Interval funds emerge as key players in alternative investments

Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.