Innovation in Donor-Advised Funds: Seven Ways DAF Sponsors Are Making The World More Generous
The world of donor-advised funds is changing fast, and it’s exciting to see how organizations are finding new ways to help people give more thoughtfully and effectively. From collaborative giving platforms to impact investing opportunities, DAF sponsors around the globe are creating fresh solutions that get donors more engaged and help their charitable dollars go further.
At the heart of this wave of innovation are organizations like Swiss-based TrustBridge Global Foundation and its affiliated network of like-minded foundations around the world, one of which is Stewardship in London. Altogether, TrustBridge Global has 18 Network Members around the world, managing more than $9 billion in charitable assets and serving over 50,000 donors who regularly give to more than 70,000 charities.
As the world’s leading international donor-advised fund provider, TrustBridge Global's collaborative model provides the perfect lens for understanding seven key innovations that are defining the future of donor-advised funds:
1. Bringing people together around giving
“Collaboration and community around giving is a major trend with DAFs serving as natural platforms for this type of engagement,” explains Bob Collins, founder and CEO of TrustBridge Global Foundation. He recently helped coordinate a ground-breaking collaborative effort involving nine US and Canadian foundations who came together to fund vital women's charity work in Lebanon. “We created a fund at TrustBridge,” Bob explains. “All the foundations gave into the fund, the grants went out to six charities, and we handled all the complex details through a single fund.”
2. Getting creative with what people can give
DAF sponsors are getting more flexible about the gifts they’ll accept beyond just cash. “Non-cash giving is becoming more popular amongst our donors, such as gifts of shares and property,” says Desirée Joseph, Head of Donor-Advised Fund at Stewardship. This approach makes practical sense, as people often have wealth tied up in various assets beyond cash.
3. Offering investment options that fit donors’ lives
Stewardship has figured out that one size definitely doesn’t fit all when it comes to investments. They've developed flexible options for donors who use their accounts in different ways, including those who want to build their balance for the longer-term with investments that align with their broader financial planning.
4. Innovating through impact investing
“One major trend is impact investing, and that can be loans, but also equity investments,” Bob explains. One notable example that TrustBridge Global has helped facilitate is the Freedom Fund—a portfolio of investments in for-profit businesses that are all fighting human trafficking. Investors can use charitable capital from a donor-advised fund to make investments in companies like Eagle Ventures and the earnings from the portfolio come back to the DAF for future grant-making––grants that can also be targeted at tackling human trafficking.
5. Building relationships that last
There's been a shift toward DAF sponsors nurturing long-term donor-charity partnerships. For example, donors at Stewardship made a commitment to give to a particular charity over four years, which saw the charity through the refurbishment of two buildings during the pandemic. “This approach helps donors think more strategically about their giving while providing charities the benefit of sustained support,” Desirée says.
6. Creating a cycle of generous giving
Here's something interesting that Bob has noticed: “Once people have given the money and put it into their DAF, they actually are a lot freer and more relaxed in their giving.” By helping donors experience the intentionality that a DAF creates, DAF providers like TrustBridge Global have been able to spur on a virtuous cycle where donors get excited about funding their DAFs so they can do even more giving.
7. Developing technology that brings donors and charities closer
Through their GivingSpace platform, TrustBridge Global has brought a sense of personal connection and transparency back to charitable giving in a digital age. On GivingSpace, charities can share updates and create specific projects for funding. And donors can ask questions about a charity or project, and champion their favorite charities.
Where DAFs are headed
As DAF sponsors keep pushing the envelope, what's really heartening is how they’re staying focused on creating meaningful impact while adapting to what donors actually want and need. Innovations from organizations like TrustBridge Global show that DAFs are becoming so much more than just giving vehicles—they're turning into comprehensive platforms that encourage collaboration, strategic thinking, and lasting impact. It’s a sign of a healthy, evolving DAF ecosystem that's getting better at serving both donors and the causes they care about.
Learn how innovations in DAF giving can help you by connecting with TrustBridge Global.
ABOUT THE AUTHOR
With two decades of experience as a brand journalist, Sheila Dolinger brings insightful storytelling on a variety of topics from her home in Atlanta, Georgia. When she's not crafting engaging content, she dedicates her time to mentoring underserved youth through a local creative writing program.