4 reasons to consider putting DAF contributions in sustainable investing portfolios.
Reason 1: Popularity.
The number of individual DAF accounts quadrupled between 2015 and 2020, making them one of the fastest-growing vehicles in philanthropy.1 There were 272,781 accounts in 2015 and 1,005,099 in 2020
Reason 2: Performance
In recent years, sustainable U.S. large-blend funds have been outperforming traditional large-blend stock funds.
76% percent of sustainable U.S. large-blend funds finished in the top half of the category over the last three years.2
Reason 3: Adoption
One out of every three investment dollars now goes toward ESG/sustainable funds.3
Investment dollars toward ESG/sustainable funds increased from $5.4 billion in 2018, to $21.4 billion in 2019, to $51.1 billion in 2020, and $71.7 billion in 2021.
Reason 4: Tax Efficiency
DAFs have higher tax deduction thresholds for cash donations than private foundations.
DAF deduction limits are up to 60% of adjusted gross income (AGI) for cash contributions and up to 30% of AGI for securities and appreciable assets,4 while private foundations deduction limits are up to 30% and up to 20% of AGI, respectively.5