Five Misconceptions About Donor-Advised Funds
Donor-advised funds (DAFs) have grown from an obscure giving vehicle into one of philanthropy’s most widely used tools. There are now more than 1,485 DAF sponsors holding approximately $328 billion in total assets.1 In the most recent full tracking year (2024), DAFs took in $89.6 billion in contributions and distributed an annual record of $64.9 billion in grants to charities.2
Despite their popularity, even experienced estate-planning attorneys and wealth advisors may have some misconceptions about how DAFs work. These information gaps can steer clients away from a vehicle that might serve them well.
I spent 26 years as the founding President and CEO of National Philanthropic Trust, among the largest DAF sponsors in the country. I helped …
