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New Reports Highlight Growth of Donor-Advised Funds and Giving Circles

Author: Stephen Sherman

Dec05

Even taking into account the Great Recession, we’ve generally seen the numbers, assets, and giving for private and community foundations in the United States continue to rise over the past decade. Over the long term, that growth has been steady and alludes to the staying power of foundations in spite of changing social, economic and political circumstances. However, while foundations have the capacity to make transformative grants in their respective communities, collectively they account for a relatively small share of charitable giving when compared with contributions from individual donors.

Donor-advised funds (DAFs) and giving circles lie somewhere in between foundations and individuals on the giving spectrum and are two of the fastest growing philanthropic vehicles. Two recent studies offer insight into the growth of these giving instruments in the United States.

The 2017 Donor-Advised Fund Report, published by the National Philanthropic Trust, surveys the growth of DAFs in the United States from 2010-2016 and provides an analysis of funds by sponsor type. Data was gathered from over 1,000 organizations that sponsor DAFs, including national charities, community foundations and single-issue charities. In 2016, there were approximately 285,000 individual donor-advised funds across the country – more than three times the number of private foundations. Nearly 44,000 DAFs are housed in organizations within SECF’s 11-state footprint, representing around 15 percent of all donor-advised funds in the country.

The 2017 report offered a glimpse at the growth and concentration of DAFs by state. Massachusetts (82,643), California (38,590) and Pennsylvania (20,819) were home to more than half of all DAFs in the country in 2016 thanks to prominent charities such as Fidelity and Vanguard. Georgia was one of the fastest-growing states for DAFs and ranked fourth nationally with 19,736 funds, slightly ahead of New York (18,481). Georgia’s leading position can be largely attributed to the National Christian Foundation, located in Alpharetta, which houses more than 16,000 donor-advised funds. Within the Southeast region, Florida, North Carolina, Tennessee, and Virginia also host significant numbers of DAFs.

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January 2020 Public Policy Update

Author: Southeastern Council of Foundations

Jan07

Each month, SECF provides members with monthly updates on the latest public policy developments in Washington and state capitols around the region, analyzing their possible impact on the charitable sector. If you would like to see an issue featured in a future Public Policy Update, contact Jaci Bertrand, SECF's vice president of member engagement, at jaci@secf.org.


SECF Public Policy Committee Welcomes New Leadership, Prepares for a Busy Year Ahead

SECF's work on public policy is heading into 2020 with plenty of momentum following crucial victories in Washington to cap off 2019, including the simplification of the private foundation excise tax and the repeal of harmful changes to the unrelated business income tax (UBIT).

The year ahead promises to be busy and unpredictable, particularly with elections on the horizon. In a few weeks, SECF's Public Policy Committee will meet to discuss our strategy for the year and the priorities we will present to lawmakers at Foundations on the Hill and beyond.

Leading the committee in 2020 will be two co-chairs: Jane Alexander, president and CEO of the Community Foundation for Mississippi, and Susan DeVenny, president and CEO of the J. Marion Sims Foundation.

Jane provides a vital perspective on the many policy issues that affect not just philanthropy, but community foundations in particular. She has served as the president and CEO of the Community Foundation for Mississippi, based in Jackson, since 2012. During that time, the foundation's assets have grown to $60 million, with more than 250 funds. Jane has led the foundation in working on a number of public-private partnerships, including an initiative between the Mississippi Governor's Office, the Mayor of the City of Jackson and the W.K. Kellogg Foundation to study and identify challenges facing the Jackson Public School system, and suggest community-based solutions to address those challenges. 

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Public Policy Update - June 2020

Author: Southeastern Council of Foundations

Jun02

Each month, SECF provides members with monthly updates on the latest public policy developments in Washington and state capitols around the region, analyzing their possible impact on the charitable sector. If you would like to see an issue featured in a future Public Policy Update, contact Jaci Bertrand, SECF's vice president of member engagement, at jaci@secf.org.

 

Pandemic Response Legislation

Congress Weighing Changes to Paycheck Protection Program: In the wake of the House nearly unanimously passing a bill that would provide more flexibility for businesses and nonprofit organizations taking Paycheck Protection Program (PPP) loans, Senate Republicans have voiced concerns. However, there is still a strong possibility of changes ultimately becoming law.

On May 28, the House, by a 417-1 vote, passed the Paycheck Protection Program Flexibility Act. The bill would extend the loan forgiveness window to 24 weeks, up from 8 weeks. The measure would also give recipients more flexibility in how they can use the loans by changing the so-called 75/25 rule. The new rule would require only 60 percent of the loan to go toward payroll to still qualify for forgiveness, down from the current 75 percent threshold. This legislation would also allow loan recipients to defer payroll taxes for a longer period of time.

Senate Small Business Committee Chairman Marco Rubio (R-FL) says there are technical errors in the House bill that could make it more difficult for recipients to get their loans forgiven, making it unlikely the Senate passes the House bill unchanged. The Senate is expected to move forward with its own set of changes to PPP, possibly extending the forgiveness window to 16 weeks.

Changes to PPP may also be folded into the so-called RESTART Act, which has been proposed by Sens. Todd Young (R-IN) and Michael Bennet (D-CO). This measure would extend the PPP loan forgiveness window to 16 weeks for businesses that have seen their revenues decline at least 25 percent during the original 8-week window. 

The bill would also create a new loan program to serve businesses and nonprofits with fewer than 5,000 employees. These loans – capped at $10 million – would be available to 501(c)(3) organizations and several other types of tax-exempt organizations. The loans would cover payroll, benefits and fixed operating expenses for recipients that have experienced significant revenue losses during the pandemic. Loan recipients with fewer than 500 employees would have an opportunity to have their loans forgiven, while nonprofit employers with more than 500 employees would receive more favorable loan terms without forgiveness.

A detailed summary of the RESTART Act with loan and repayment examples can be found here.

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Public Policy Update - July 2020

Author: Southeastern Council of Foundations

Jul07

Each month, SECF provides members with monthly updates on the latest public policy developments in Washington and state capitols around the region, analyzing their possible impact on the charitable sector. If you would like to see an issue featured in a future Public Policy Update, contact Jaci Bertrand, SECF's vice president of member engagement, at jaci@secf.org.


Bills to Expand Charitable Giving Introduced in House and Senate

Two Southeastern lawmakers are among the lead sponsors of bipartisan, bicameral proposals to expand the temporary universal charitable deduction put into law earlier this year.

In the Senate, Sen. Tim Scott (R-SC) is a lead sponsor of the Universal Giving Pandemic Response Act (S. 4032), which would expand the temporary $300 universal charitable deduction included in the CARES Act to one-third of the standard deduction, or roughly $4,000 for individuals and $8,000 for joint filers. The increased deduction would be available for tax years 2019 and 2020. Rep. Mark Walker (R-NC) has partnered with Rep. Chris Pappas (D-NH) to introduce an identical version of this legislation in the House.

The lead sponsors on the bill have indicated they are trying to get the expansion included in the next COVID relief package, which is expected in late July. The Senate Finance Committee is also considering expanding the universal charitable deduction in the next package, but committee members are also interested in adding compliance provisions to reduce the cost to the federal government and avoid fraud.

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Public Policy Update - August 2020

Author: Southeastern Council of Foundations

Aug04

Each month, SECF provides members with monthly updates on the latest public policy developments in Washington and state capitols around the region, analyzing their possible impact on the charitable sector. If you would like to see an issue featured in a future Public Policy Update, contact Jaci Bertrand, SECF's vice president of member engagement, at jaci@secf.org.


Fate of Next COVID Relief Package Unclear 

As of this afternoon, the state of the next COVID-19 relief bill, including provisions affecting philanthropy and nonprofits, remained fluid.

Senate Majority Leader Mitch McConnell (R-KY) released the $1 trillion HEALS Act last week. However, several Republican senators are opposed to key provisions of the bill. That, combined with the need to achieve 60 votes to overcome a filibuster, means McConnell has to negotiate not only with his own party, but also with Democrats, whose votes will be essential to passing any legislation. 

Pressure has been added by rising jobless claims and the expiration of both a federal eviction moratorium and enhanced unemployment assistance (UI), which was providing an extra $600 per week to those unemployed due to the pandemic. 

More PPP Loans Possible: As of today, the HEALS Act includes another round of funding for the Paycheck Protection Program, which offers forgivable loans to small businesses and nonprofits. However, only organizations with fewer than 300 employees that can also show a 50 percent decline in revenue will be eligible for the next round. The proposal also includes liability protections for businesses, schools and nonprofits that reopen, a top priority for Republicans.

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Public Policy Update - February 2021

Author: Southeastern Council of Foundations

Feb09

Each month, SECF provides members with monthly updates on the latest public policy developments in Washington and state capitols around the region, analyzing their possible impact on the charitable sector. If you would like to see an issue featured in a future Public Policy Update, contact Jaci Bertrand, SECF's vice president of member engagement, at jaci@secf.org.

 

Attending Foundations on the Hill Is Easier Than Ever – Here Are Five Reasons Why

Foundations on the Hill – SECF members’ best chance all year to connect with lawmakers in Washington – is going virtual this year. That means it’s never been easier to attend as part of the SECF delegation.

If you’ve never attended FOTH before, here are five reasons why you should make this the year you join us:

  1. Virtual FOTH is an incredible value. For just $99, you’ll be able to participate in multiple meetings with members of Congress and their staff. You will also be able to learn more about public policy by attending virtual sessions presented by our partners at the United Philanthropy Forum.
     
  2. FOTH works with your schedule. Meetings with members of Congress will take place throughout six days spread between two weeks – March 16-18 and 23-25. This flexible approach will make it easier to meet lawmakers without getting in the way of the rest of your work!
     
  3. You can attend without leaving your desk. Usually, attending Foundations on the Hill requires leaving town for a few days, flying to Washington and staying in a hotel. This year, all you need to do is join a videoconference from your home or office! 
     
  4. You’ll be supported every step of the way. Before, during and after your meetings with lawmakers, you’ll benefit from the support of the SECF staff as well as fellow members who have stepped up to serve as state captains. You’ll have everything you need to make your FOTH meetings a success!
     
  5. You’ll forge new and valuable relationships. Members of Congress not only write legislation that regulates our sector – they can also facilitate partnerships that help further your foundation’s mission. You’ll also get to connect with other SECF members, especially those in your own state!

You can sign up for FOTH now if you’re already convinced, but if you’d like to learn more, register now for our February 17 webinar, Public Policy 101: Why You Belong at Foundations on the Hill!

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Public Policy Update - July 2021

Author: Southeastern Council of Foundations

Jul13

Each month, SECF provides members with monthly updates on the latest public policy developments in Washington and state capitols around the region, analyzing their possible impact on the charitable sector. If you would like to see an issue featured in a future Public Policy Update, contact Jaci Bertrand, SECF's vice president of member engagement, at jaci@secf.org.

 

Upcoming Member Webinar on the Accelerating Charitable Efforts (ACE) Act  

Register


Join us at 3:00pm ET on Tuesday, July 27, for a special public policy Member Webinar on the Accelerating Charitable Efforts (ACE) Act, legislation introduced last month that would make significant changes to laws governing the work of private foundations and donor-advised funds (DAFs).

Our webinar will review the major provisions of the legislation and what its provisions could mean for donor-advised funds and different types of foundations. We’ll also discuss the prospects for the legislation in Washington.

Joining us will be Sandra Swirski, Sara Barba and other members of the Philanthropy Team at Urban Swirski & Associates, a leading bipartisan Washington, D.C., advocacy firm. 

For more details on the ACE Act and its provisions, read the item below!

 

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Public Policy Update - September 2021

Author: Southeastern Council of Foundations

Sep15

Each month, SECF provides members with monthly updates on the latest public policy developments in Washington and state capitols around the region, analyzing their possible impact on the charitable sector. If you would like to see an issue featured in a future Public Policy Update, contact Jaci Bertrand, SECF's vice president of member engagement, at jaci@secf.org.

 

Work Continues on $3.5 Trillion “Social Infrastructure” Bill

The $3.5 trillion tax and spending package that forms the centerpiece of President Biden’s domestic agenda is now making its way through the legislative process in the House and Senate.

In the House, the Ways and Means Committee is crafting its part of the bill this week. Democrats suffered a setback today in the Energy and Commerce Committee, where three moderates in the party voted down a plan to allow the Department of Health and Human Services to negotiate lower drug prices for Medicare recipients.

That proposal – long a priority of Democratic leaders – provides a crucial part of the financing for the overall legislation. While it can be added back in, its defeat here reflects the unease some moderates in the party have with the legislation.

Senate Democrats are expected to release their own detailed version of the legislation this week. Over the weekend, moderate Democratic Sen. Joe Manchin (D-WV) indicated he remains opposed to the $3.5 trillion price tag that Biden and Democratic leaders in Congress have set for the bill.

The overall package still has to go through many steps and there are expected to be significant differences between the versions passed by the House and the Senate. We will continue monitoring the legislative package, which aims to address many areas of concern to grantmakers.

 

Hurricane Ida, Flooding Relief Likely to Be Part of Stopgap Spending Bill

The fiscal year ends on September 30 and with none of the regular spending bills passed into law, Congress will have to pass what’s known as a continuing resolution to prevent a government shutdown on October 1.

The resolution would keep the government running at existing funding levels. However, it will also likely include new spending to address immediate issues, including disaster relief for areas damaged by Hurricane Ida, flooding in central Tennessee and other natural disasters.

 

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Southeastern Council of Foundations
100 Peachtree Street NW, Suite 2080
Atlanta, GA 30303

Visiting SECF:
All staff are working remotely at this time but can still be reached via email and by calling (404) 524-0911.

Hours:
Monday-Thursday from 9:00am–6:00pm (ET)
Friday from 9:00am–12:00pm (ET)


Phone: (404) 524-0911
Fax: (404) 523-5116

Mission: SECF strengthens Southern philanthropy, welcoming our members to listen, learn and collaborate on ideas and actions to help build an equitable, prosperous South.