By Jan Masaoka While this may surprise those who follow philanthropy’s every move, Congress only rarely passes laws that directly regulate philanthropy. The last truly foundational law regarding philanthropy was passed in 1969. That was the law that mandated a 5% minimum payout from private foundations, among other provisions (such as prohibitions against self-dealing). Of course, a lot has changed in philanthropy since 1969! Consider, for example, the donor-advised fund, or DAF. The first DAF may date back to 1931, but the significance of DAFs has increased markedly in the past half century, with the number of assets held in
Category: Donor Advised Funds
By Brooke Bryant, Ph.D; Robin Merle, CFRE; and Laurence A. Pagnoni, MPA As we approach a new year, fundraisers continue to navigate an unsettled landscape. The ongoing COVID-19 pandemic, calls for racial justice, changing donor expectations, and a tight labor market have been central themes in 2021 — and they will continue to influence how we approach our work in 2022. Against that backdrop, we offer these 12 fundraising trends to watch over the next 12 months: The 12 Biggest Nonprofit Trends for 2022 Donors Will Give More Generously Equity Must Be Front and Center Hybrid Is Here to Stay Megadonors Will Be
By Laurence A. Pagnoni, MPA We must ensure that all charitable donations are made available for charitable use, rather than languishing indefinitely in donor-advised funds (DAFs). After all, donors who contribute to DAFs receive an immediate tax benefit. But nonprofits have no idea when they’ll ever see a dime. DAFs have come under fire for the fact that they are not legally required to spend the money that they receive and can hold it for as long as they want. Plus, the fiduciary managers have an incentive to keep the money in the DAF. Granted, many donor-advised fundholders are both
By Laurence A. Pagnoni, MPA As Giving Tuesday comes around on November 30, I am asking you to think deeply before you commit to promoting it. My annual struggle over whether to include Giving Tuesday (GT) in my year-end fundraising plan is in full swing. This year, I am distracted by the gargantuan untapped revenue that you can access from those donors with Donor Advised Funds (DAFs) — upwards of $140 billion. I am asking myself if instead of focusing on Giving Tuesday, would it be more lucrative for me to focus on cultivating and soliciting those donors with Donor Advised Funds? Your
By Laurence A. Pagnoni, MPA Three new realities distinguish 2021 year-end giving. Engaging these new realities can significantly increase your year-end giving drive. They are…. You can now add a “donate” button to your Zoom events. Donor-advised funds have grown to gargantuan levels. Engaging giving circles should be a part of your strategy. While the fundamentals of year-end giving still apply, and I describe them in great detail here, 2021 also brings us three unique approaches for you to capitalize on, literally. Zoom Donate Button The new Zoom donate button is similar to Facebook’s donate button—but with a key difference.
By: Al Cantor November marks the tenth anniversary of Professor Ray Madoff’s New York Times op-ed calling for new rules that would accelerate grantmaking from donor-advised funds. Over the years since, as the amount of money in donor-advised funds has grown from $25 billion to $142 billion, the DAF industry has pushed back strongly against Madoff and other reformers, relying on a familiar set of arguments to justify the status quo. These assertions have long rung hollow. Now, thanks to research that has come to light in the last few months, it’s increasingly evident that the talking points of the DAF industry are utterly without
By Alan Cantor Watch a recent in-depth LAPA webinar on the subject of Donor-Advised Funds Some people simply can’t take “yes” for an answer. How else can one explain how some community foundation leaders rejected the thoughtful set of reforms contained in the Accelerating Charitable Efforts (ACE) Act — a series of measures to reform Donor-Advised Funds (DAFs) that would actually serve community foundations well? For years, the lobbying arm of community foundations — the Community Foundations Public Awareness Initiative — has embraced a business model in which it fights any form of reforms around DAFs, no matter how mild.
By Laurence A. Pagnoni, MPA Are you baffled about Donor Advised Funds, or at least about how to cultivate and solicit them? If so, I will explain here six ways you can promote donor-advised fund giving. My name is Laurence A. Pagnoni, and I’m the author of The Nonprofit Fundraising Solution and Chairman of LAPA Fundraising. So what is a donor advised fund? The primary benefit of a donor-advised fund (DAF) is that it allows someone to donate assets for charity today – and receive a tax deduction now – even though the actual funds may not be granted to