Donor-Advised Funds in the U.S.: Controversy and Debate

Summary

For the past five to seven years, donor-advised funds have represented one of the fastest growing segments of philanthropic giving in the U.S. Critics of these funds fear that donor involvement can cause mission shift and make it more difficult for charities to build endowments. They raise questions about unfair competition and donor intent. Proponents of donor-advised funds say that these funds respond to the desire of many donors to be involved and encourage them to be more generous and thoughtful about their philanthropy. This article explores the controversy and debate that has surrounded the growth of donor advised funds in the U.S. and provides a context for considering their potential impact in Canada.