When it comes to supporting charities and good causes, most people don’t get joy from the act of giving but instead from the results they hope will be achieved with their donation. And with big problems to solve, people want to make sure that their precious support is as effective as possible.
However, the infrastructure and routes from the donation to the point of delivery can often be inefficient and the results we hope for aren’t achieved as the problems persist. The same challenge exists for those who are looking to support good causes through the companies they work for, as most businesses aren’t set up to properly support making positive change.
This can lead to frustration as people feel they don’t have the means, finances, or tools to make a real difference to some of the world’s biggest problems. It’s all too easy to feel powerless.
We know there’s a better way of doing things.
And at the heart of our desire to make change here at Impactful is democratising the concept of the Donor Advised Fund or DAF. These are tools which high net worth individuals are already very familiar with, but we want to make available to everyone.
So, what is a DAF? They are fast growing giving-vehicles, that enable donors to give in a flexible, results focussed, efficient and tax-effective way. Opening a DAF, enables you to define your own social cause, invest to grow the funds to achieve it, and then release those funds to your cause and clearly track and measure the impact that you are having.
The National Philanthropic Trust’s 15th annual Donor-Advised Fund Report details how DAF donors are at historic levels. In 2021, grants from DAFs to qualified charities totalled an estimated $34.67 billion, representing a 27.0 percent increase compared to 2019 and a new high-water mark – the highest DAF grant increase in a decade. And the number of individual DAF accounts in the U.S. is above one million for the first time.
Anyone can utilise a DAF, but currently there are limited legacy providers and limited education on the benefits, meaning this is a closed off and underutilised vehicle for the average person. The team here at Impactful are changing and opening DAF investments to everyone.
And we want to take this further, there’s a power and strength in numbers. If DAFs are opened up to enough people, and groups of individuals that share common goals rally together around a shared purpose, then the impact and legacy can be huge.
Our mission is to enable the collective potential of humankind to tackle the world’s biggest challenges. We are building the financial resources that empower individuals through our investing to give platform, offering DAFs that maximise capital for doing good.
By taking advantage of the opening of these tools, a better way of giving – democratising DAFs, we can all focus on our legacy, our purpose and how we can actually achieve it.
If you would like to learn more about offering your staff the opportunity to have their own DAF, then contact – [email protected] and we can share some more details.