More individuals and corporations are giving to charity, as the economy showed healthy signs of recovery, according to a recent report by the National Philanthropic Trust (NPT).
Among the charities sector that enjoyed high growth are donor advised funds (DAF), which saw grants increase by almost 17% in 2015. From almost $12.5 billion in 2014, DAF grants to qualified charities grew to $14.5 billion, according to NPT.
Meanwhile, contributions to these funds increased by 11% to more than $22 billion in 2015 from almost $20 billion the previous year.
DAFs also saw their charitable assets grow by almost 12% or around $8 billion to almost $79 billion in 2015 from more than $70 billion in 2014. The sustained double digit asset growth continues the trajectory first observed in 2010, NPT said.
Total DAF accounts also grew from more than 240,000 to almost 270,000 in the pertinent periods, but grant payouts receded from 21.7%in 2014 to 20.7% in 2015.
The NPT report tracked more than 1,000 of the 1.1 million registered public charities in the US.
“The last several years have seen a tremendous growth in all donor-advised fund metrics, but particularly in contributions. The five-year compound annual growth rate from 2010 to 2014 was almost 21 %. Uncertainty about tax policy, the political environment and other market conditions fuelled this growth. We predict continued growth in contributions to donor-advised funds, but likely at a much lower rate,” NPT added in its report.
The report also read, “As contributions level out, we predict a continued increase in grant making and rise in payout rates. Grants grew almost17 % between 2014 and 2015. The five-year compound annual growth rate from 2010 to 2014 was at 14.5%. Already, we are seeing this increase in grant making and we expect it will continue.”
Related Stories:
Non-profits face staffing and donor challenges: SEI
Sustainer programs a viable long-term fundraising method: report
