Donor Advised Funds “played an important countercyclical role during the financial crisis a decade ago,” according to researchers
As nonprofits prepare themselves for an eventual market downturn, one “bright spot” in individual giving are those who were savvy enough to set up donor advised funds when the stock market was at an all-time high.
A recent Chronicle of Philanthropy article cited the work of two researchers who found that “people with donor advised funds played an important countercyclical role during the financial crisis a decade ago, by maintaining their giving even as the economy weakened.
We saw this play out at Jewish Communal Fund, where our Fundholders generously increased their grants to charity during the recession, when needs were greater, yet many people had to cut back on their charitable giving. That’s one of the benefits of a donor advised fund–JCF Fundholders can quickly respond to critical needs.
Read the entire Chronicle of Philanthropy article here: https://www.philanthropy.com/article/The-Recession-Wild-Card/247779