Donors made £84 million in grants from NPT UK and NPT Transatlantic's donor-advised funds last year
2023 marked a record year of grants to charities from donor-advised funds
LONDON, Feb. 26, 2024 /PRNewswire/ -- National Philanthropic Trust UK (NPT UK) and NPT Transatlantic (NPT TA) granted £84 million on behalf of its donors last year, making 2023 the most impactful year for the organisations to date.
The value of grants to charities from both NPT UK and NPT TA donors increased by more than 50% on the previous year (to £18.6 million and £65.4 million respectively), with donors recommending more than 1,300 grants from their donor-advised funds accounts.
These new milestones are further evidence of the significant growth of donor-advised funds across the UK and NPT UK's leading role in the sector.
"The growth in grants reflects a broader trend of more donors using donor-advised funds to manage their giving over time," said John Canady, CEO of NPT UK. "During this cost-of-living crisis, when communities across the UK are facing unprecedented needs, DAF donors are playing a pivotal role in providing swift, flexible, and impactful support to charities. DAFs provide a convenient and tax-effective vehicle that helps donors amplify the impact of their charitable giving. Our donors' grants underscore the enduring spirit of philanthropy in the UK."
The flexibility and convenience of DAFs are among the key factors driving their popularity. DAFs allow donors to contribute cash, stocks, or other assets to a fund and receive an immediate tax benefit. The funds can then be distributed to charities over time, according to the donor's preferences.
The 2023 Donor Advised Fund Report which provides the most comprehensive set of data on the state of DAFs in the UK and is also compiled by NPT UK, shows that contributions to DAFs increased for a tenth year in a row in the UK.
In response to this growth, charitable organisations and nonprofits are increasingly recognizing the importance of engaging with DAF donors, with the rise in DAF grants enabling charities to fund a wider range of initiatives. Last year, NPT UK and NPT Transatlantic donors recommended grants to a variety of charitable organisations, including those tackling the cost-of-living crisis in the UK, providing humanitarian aid in conflict zones, administering disaster relief following natural disasters and facilitating access to health and education.
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