In the past few years, DAFs have become absolutely central to the conversation about the future of philanthropy.
Right now, more than $250 billion is sitting untouched in donor-advised funds (DAFs) on virtual bank ledgers across the United States. DAFs are essentially holding accounts for promised charitable efforts. whose funders have already received their tax benefit. Over the last decade, they have exploded in prominence, becoming a dominant vehicle for charitable giving. At the same time, a vocal movement has called for more accountability, transparency, and urgency in how these funds are distributed.
The debate around DAFs is, at its core, a debate about control: Who controls philanthropic capital? Who decides how quickly it moves? Who ensures it serves the public good?
That’s why Proximate is launching Unlocking Abundance, a new editorial series that will investigate the evolving landscape of donor-advised funds and broader questions of power in philanthropy. Over the course of this series, we will explore the mechanics, incentives, and regulations that govern DAFs—and the grassroots movements pushing for change.
Demystifying DAFs
At their inception, DAFs were pitched as a simple way for donors to give strategically—offering an immediate tax benefit with the flexibility to distribute funds over time.
But in practice, they have become vast reservoirs of untapped philanthropic capital. Today, over $250 billion sits in DAFs, compared to $1.5 trillion in foundation endowments. While DAFs still hold a fraction of foundation assets, their grantmaking has grown considerably, reaching nearly $55 billion in 2023—almost half of all foundation grants. This rapid growth positions DAFs as an unprecedented force in modern philanthropy.
It also raises urgent questions about access, accountability, and the speed of giving. Through this series, we will examine the often opaque regulatory framework around DAFs; the blurry lines between public benefit and donor intent; and the legislative and administrative reforms being debated in halls of power. We'll look at:
- How donor-advised funds operate within community foundations versus commercial sponsors
- The policy battles shaping the future of DAFs
- The power dynamics that determine where DAF dollars actually go
- The role of donor networks and financial institutions in accelerating (or stalling) giving
- Innovative models that push the boundaries of traditional DAF structures
Unlocking Abundance
The conversation around DAFs is urgent. With wealth inequality at historic highs and social services institutions collapsing, the philanthropic sector faces mounting pressure to ensure that charitable dollars don’t sit idle.
We aim to bring clarity to this debate, elevating perspectives from donors, community leaders, policymakers, and nonprofit executives. Our goal is to challenge assumptions, highlight innovative solutions, and spark meaningful discussions about the future of charitable giving.
We invite you to engage with us. Sign up here to receive updates and invitations to upcoming events.
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