Pushing Donor Advised Funds to Respond to this Moment

In our April 2019 newsletter, we reviewed the pros and cons of donor-advised funds (DAFs). At least two efforts are underway to bring more transparency and accountability to DAFs. One is a grassroots effort spearheaded by a San Francisco couple. Using the hashtag #HalfMyDaf, David and Jennifer Risher are calling on their fellow DAF holders to commit, by September 30, to give away at least half of the money in their funds. The Rishers are offering matching grants to nonprofits nominated by donors who sign their pledge. 

On the policy front, CalNonprofits is asking California nonprofits and leaders to support AB2936, which would establish definitions for donor-advised funds (which are currently un-defined in California law) and affirm the state Attorney General’s authority to require reports from DAF sponsors. The bill would be the first legislation of any kind in the United States to regulate DAFs.  While this legislation is California-specific, it has the potential to be a model for other states.  DAF holdings were estimated in 2018 at more than $120 billion.