Donor Advised Funds (DAFs) are growing in popularity in the UK and offer philanthropists an attractive alternative to setting up a charitable foundation. They represent a growing proportion of philanthropic capital in the UK with an estimated £1.3 billion charitable assets.
At the same time, we’re seeing rapid growth in the social impact investment market where investments are designed to achieve a social return as well as a financial return (typically to a social enterprise or charity). The social impact market in the UK is estimated to be worth £2.3 billion.
Some philanthropists are already using their DAF for social impact investment, helping the money they have gifted into their DAF work harder. Social impact investment has the potential to compound the impact of your gift by recycling an investment once it’s been repaid, as well as growing the amount of money available to your chosen cause via grant.
In collaboration with the DAF Advisory Council, we’ve produced this short guide to help educate donors on the opportunity that exists to maximise philanthropy: Maximising Your Philanthropy: A guide to Social Impact Investment and Donor Advised Funds.
This guide is full of examples of donor’s experiences which we hope will inspire you to think differently about your philanthropy. We believe that if more donors use their DAFs for social impact investment, there is potential for huge positive social impact.