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While not subject to the same distribution requirements as private foundations (PFs), donor-advised funds (DAFs) consistently punch above their weight when it comes to grantmaking. For instance, researchers have noted that despite holding just one-sixth of the aggregate assets held by all DAFs and PFs, DAFs were responsible for roughly a third of such charitable entities’ grants in 2022.1
How do DAFs compare to PFs in terms of less traditional means of support? And when should DAF donors weigh alternate strategies? Consider that many nonprofits consistently raise just enough revenue from fees for service, government and private fundraising to meet their immediate needs and must turn to other forms of financing to achieve certain long-ter...
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