Based on a National Philanthropic Trust report last year, there were roughly 285,000 individual donor-advised funds in the U.S. as of 2016. Donors contributed $23 billion to these funds and used them to recommend almost $16 billion in grants to qualified charities. Both grants and contributions were at record highs. Charitable assets in donor-advised funds jumped 9.7% to $85 billion in 2016, thanks to increased contributions and investment gains. The average donor-advised fund account size was $298,809.
As noted in the Giving USA report, donor-advised funds let financial advisors integrate charitable giving with other financial planning strategies. These vehicles can also help advisors initiate conversations about philanthropy while allowing clients to choose their own charitable causes at their own pace.
But, as noted by the National Philanthropic Trust, the recent federal tax reform could reduce the tax benefits of giving to a donor-advised fund.