Fidelity Touts Increased DAF Contributions and Payouts in 2023

Fidelity Charitable, the Shaquille O’Neal of DAFs, released its annual report touting increased contributions and record breaking payouts to and from donor advised funds.  And implicitly refuting the notion that Congress should pass legislation pertaining to DAF donor disclosure and payouts.  Here is part of a write-up from the Associated Press:

Fidelity Charitable, the nation’s largest grantmaker, distributed a record-setting $11.8 billion to nonprofits in 2023, up more than 5% from the previous year at a time when generally donations are dropping.  The grant total shows how quickly use of the donor-advised fund — an investment account that allows donations to be distributed over time — is growing. Fidelity Charitable said distributions to nonprofits in 2023 were four times what they were 10 years ago.

“I think 2023 was a pretty amazing year,” Fidelity Charitable President Jacob Pruitt told The Associated Press. “When you think about the volatility, the market inflation, we still did a phenomenal job in regards to grantmaking. And that’s our big measure — dollars going into the sector.”  According to Fidelity Charitable, donors attached their names or the name of their DAF to 96% of the grants made in 2023.  “We feel we have a really solid platform,” Pruitt said. “We support regulations that focus on grantmaking and making sure that these dollars flow out of the platform.”

It’s pretty slick propaganda, alright.  Still, the report contains good numbers and numbers don’t lie even if people do.  We need some analytics on whether DAFs do more good than harm.  

darryll k. jones