Donor-Advised Fund Grantmaking Continues Its Surge During Covid-19
Donor-advised fund account holders at community foundations continue to rally to support those in need in the face of Covid-19, according to a new survey by the Community Foundation Public Awareness Initiative.
The latest figures, which track donor-advised fund grants at 32 community foundations in 21 states, found that donors who had funds at these foundations made $203.1 million in grants from March-May. That's up 80 percent over the same period in 2019, when donors from those same foundations granted $112.8 million.
This massive surge in grantmaking has remained constant throughout the Covid-19 crisis and speaks to the power of donor-advised funds as a tool for providing critical support to nonprofits during difficult economic times.
In many communities, donors have granted two or three times more than they have in previous years – and are pledging to make additional contributions to nonprofits as the crisis continues to unfold. Donor-advised fund grants at The Boston Foundation, for instance, totaled nearly $71.4 million from March to May– more than doubling the $32.6 million in grants during the same period in 2019.
“I am inspired by the generosity of our donors in this time of need, but far from surprised. Our donor advised fundholders are ramping up their giving and are our willing partners in efforts to address the deep equity and opportunity divides that have made COVID-19 so devastating in low-income communities and communities of color,” said Paul S. Grogan, President and CEO of The Boston Foundation. “Donor advised funds are proving to be a ready source of philanthropic capital to address critical needs during this pandemic."
About the Survey
Community foundations are grantmaking public charities that mobilize the assets of past and current donors to improve the lives of people in a defined geographic area. They use the resources of individuals, families, and businesses to support effective nonprofits in their communities.
The Community Foundation Public Awareness Initiative survey includes results from community foundations in every region of the country, covering 21 states. The U.S. is home to nearly 800 community foundations – meaning the total granted through donor-advised funds at all community foundations during this period far exceeds the $821.9 million granted by those who responded to the survey.
Historically, donor-advised fund holders have stepped up to support their communities during difficult economic times.
A 2019 study by Dan Heist, a professor at the University of Pennsylvania, and Danielle Vance-McMullen, an assistant profession at the University of Memphis, found that donors who manage DAFs tend to be more generous with their grantmaking during recessions, especially when compared with other forms of giving.
But the response, to date, of community foundation donors to address Covid-19 is unprecedented in its size and scope.
An earlier — and larger — survey of donor-advised fund activity at 64 U.S. community foundations during March and April, found that donor-advised funds at these foundations granted $821.9 million to nonprofits in during that same period. That figure represents an increase of $302.5 million, or 58.2 percent, compared with the same period one year ago.
“When things are at their worst, community foundations and our donors are at our best,” said Lorie Slutsky, president of The New York Community Trust. “Covid-19 is impacting the lives of our nation’s most vulnerable people in countless ways – and it is up to all of us to join together to support our neighbors in need. Here in New York, and around the country, we have been encouraged and thankful to see our long-standing community of donors step forward to generously help our region, and our nation, heal.”
Resources for Reporters
The Community Foundation Public Awareness Initiative can connect reporters with donors who are giving generously to support those impacted by Covid-19.
Our network of community foundation leaders is also available to discuss community needs, donor behavior, and how their communities are working together to address the most pressing issues related to Covid-19.
Contact:
Peter Panepento
peter@turn-two.co
(202) 531-3886
