Donor Advised Funds Key to Serving Communities During Economic Crisis
Philanthropy Today - April 2009
Each month, PARSA Community Foundation highlights three articles about philanthropy trends, events, news and studies.
- A new survey conducted by the Council on Foundations finds that most community foundations plan to increase funding for human service organizations in 2009, made possible by increased support from the donor-advised funds (DAFs) they administer. The survey also determined that 56% of respondents' 2008 giving came from DAFs. According to Council on Foundations president and CEO Steve Gunderson, "Community foundations continue to focus on and meet the needs of their communities during this economic crisis. Today, donor-advised funds represent the most popular tool of their citizens to support these needs.": http://www.cof.org/council/prdetail.cfm?ItemNumber=15790&navItemNumber=3990
- The Washington Post reports that philanthropists and nonprofits have raised concern over the Obama administration's proposal to limit the value of deductions for charitable gifts. Under this proposal, taxpayers earning more than $250,000 will have their ability to deduct contributions to charities reduced to a rate of 28% from 35%. According to the Center on Budget and Policy Priorities, the proposal could reduce donations to the nonprofit sector by as much as $3.87 billion: http://www.washingtonpost.com/wp-dyn/content/article/2009/03/25/AR2009032503103.html
- According to the Philanthropy News Digest, the weak economy combined with President Barack Obama's call for service have resulted in a major jump in applications to service organizations. Teach for America's applications have doubled and the Peace Corps has experienced a 16% increase in applicants. City Year, which places young adults as mentors for school children, has seen applications triple this year: http://foundationcenter.org/pnd/news/story.jhtml?id=244700014