While many continue to wait for the relief they hoped 2021 would bring, many small businesses and social service organizations are still struggling. Some 83 percent of nonprofits have reported a decline in revenue with nearly three-quarters having to reduce their services. This at a time when upper-income households are faring better during the pandemic — and Wall Street is under fire for favoring big investors. It is welcome news, then, to learn that, like any well-managed endowment, Americans funds dedicated to charitable causes and available at the discretion of small donors across the nation, have grown by more than 5 billion dollars from 2015 to 2019 alone.
This is not a hypothetical. It has actually taken place as a result of a dramatic change in the world of charitable giving in recent years. And it provides a special reason for optimism.
The endowment is a collection of what is technically known as donor-advised funds (DAF). These personal charitable giving accounts allow taxpayers who itemize their returns to support charitable causes and groups by directing donations to their own type of mini-foundation. Donors are allowed a tax deduction while being free to decide when, how much, and who to help.
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