On Philanthropy: Pressure Builds to Increase Giving Requirements and Expand Charitable Deductions

“More than $1.1 trillion currently sits in private foundations and donor-advised funds (DAFs) in the U.S. These two charitable intermediary tools have grown tremendously in recent years, fueled by tax-deductible contributions for the wealthiest of Americans. By 2019, 12.7% of all individual giving went to DAFs and an additional 15.1% went to private foundations — and over 500% growth in individual giving to these warehouse/intermediaries over the past 30 years.

While private foundations and donor-advised funds amass huge sums of money, demands on nonprofits to provide essential social services have skyrocketed. Despite the growing need and increased contributions to foundations and DAFs, average giving to charity in the U.S. has remained constant for 40 years at roughly 2% of disposable income.” Continue reading.

(Source: The Denver Post)
4-minute read.