Donor-advised funds (DAFs) continue to demonstrate their growing importance in the philanthropic landscape, with new data underscoring their rapid rise in charitable giving. While debates persist around the advantages and limitations of DAFs compared to private foundations, the structure remains a preferred choice for many high-net-worth individuals seeking effective ways to give.
Vanguard Charitable, a major US nonprofit sponsoring DAFs, reported that its donors granted more than $3.5 billion between July 2024 and June 2025, representing a 14 percent increase over the previous year. This growth was partly fueled by disaster response efforts, with catastrophic events such as floods in Texas and wildfires in Southern California prompting increased donations.
In total, nearly 248,000 grants were made, averaging around $14,000 each, and distributed across 62,950 nonprofits. These grants supported a wide range of causes, including human services, religion, education, health, and the environment. Notably, the top recipients by grant volume were Doctors Without Borders, World Central Kitchen, and Samaritan’s Purse. Vanguard Charitable emphasized that donor generosity has expanded not only in terms of total funds given but also in the diversity of organizations supported.
Disaster relief emerged as a significant driver of this surge. Between January and June 2025, grants increased by 30 percent compared with the same period last year, coinciding with major disasters in California, North Carolina, and Texas. Of the total, more than $11.2 million went to hurricane relief and $10 million supported communities impacted by wildfires. Additionally, over half of all grants (51.7 percent) were unrestricted, giving nonprofits greater flexibility to allocate resources where they were most needed.
This trend is echoed by broader industry data. In August, DAFgiving360™, one of the largest DAF providers in the US, announced a record-breaking $8.9 billion in grants during its 2025 fiscal year. These figures highlight the continued expansion of DAF activity across the charitable sector.
Still, the debate over DAFs versus private foundations remains active. DAFs offer benefits such as tax deductibility, anonymity, and fewer payout restrictions, making them attractive for donors seeking flexibility and privacy. However, they also come with limitations, including restrictions on giving only to IRS-qualified charities and less control compared to private foundations. There is also the possibility of future regulatory changes, such as mandatory payout requirements or excise taxes. Despite these concerns, DAFs continue to play a central role in modern philanthropy, particularly in times of crisis.
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