Educational Organizations Are Prime Beneficiaries of Donor-Advised Funds

Around 25% of donations from donor-advised funds (DAFs) between 2020-2022 go to educational causes, significantly higher than the 14% of total U.S. charitable donations allocated to education. In contrast, only 14% of DAF donations go to religious organizations, compared to 24% of total U.S. charitable giving.

DAF giving patterns remain consistent since 2012-2015, with education consistently receiving the largest share of grants. Higher education donations are attributed to wealthier individuals who often use DAFs and prioritize educational causes.

DAF contributions to human services slightly increase, while grants to public-society benefit organizations, which surge in 2020 due to the pandemic and racial equity protests, decline. The “flow rate” of DAF grants peaks in 2020 but returns to pre-pandemic levels.

Other notable figures for 2022 include DAF allocations of 6.2% to arts and culture, 4.7% to environmental and animal organizations, 9.2% to health, and 7.3% to international affairs, with the latter likely boosted by the war in Ukraine.

For more information see Abby Shultz “Educational Organizations Are Prime Beneficiaries of Donor-Advised Funds” Barrons.com, August 2, 2024.

Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.