The National Philanthropic Trust (NPT) UK, one of the leading providers of donor-advised funds (DAFs) in the UK, granted £12.2 million on behalf of its donors during Calendar Year 2022. This represents a 37% increase in the value of charitable grants from NPT UK donors to 2021, and almost a three-fold increase compared to 2020.
The volume of grants made by NPT UK has also risen year on year, peaking at 421 in 2022. When combined with grants donated since 2020, NPT UK has distributed £25.7 million through 864 grants since the start of the pandemic.
In addition, NPT Transatlantic, a UK/ US dual qualified DAF, distributed over £40 million in grants in Calendar Year 2022, representing a 78% (£17.8 million) increase in donations from pre-pandemic giving in Calendar Year 2019.
These figures represent the continuous growth of donor-advised funds across the board in the UK.
John Canady, CEO of National Philanthropic Trust UK said: “These figures represent the continuous growth of donor-advised funds across the board in the UK. They are indicative of a greater awareness among the wealth management industry of the role that DAFs can play as an effective alternative to setting up a private trust or foundation.
“Our data also shows that DAF donors are reacting positively to charitable needs despite a difficult economic climate. More donors are contributing larger amounts to DAFs with both the value and volume of grants significantly increasing since the start of the pandemic. As the charitable sector continues to operate under enormous pressure and keep pace with demand for their services, we know that donors want easy and more flexible ways to give – DAFs provide that option.”
Harriet Gugenheim, Head of Philanthropy and Partnerships at youth education and employment charity, Impetus, said: “Too many young people in the UK who come from disadvantaged backgrounds are prevented from reaching their full potential. We use the donations we receive to change lives by making sure the money is spent on interventions that are evidence-based and deliver real impact. Donor-Advised Funds have made a major contribution to the organisations and charities that we support, helping us to give young people from disadvantaged backgrounds the chance to succeed in school, work, and life.”