While donor-advised funds (DAF) comprise approximately 33 percent of the community foundation sector’s total assets, they account for 62 percent of the community foundation sector’s annual grantmaking, a new report from the Council on Foundation finds. The Council, in conjunction with the Community Foundation Leadership Team, conducted a Web-based survey of community foundations in the summer of 2008.

According to a new report based on that survey, Donor-Advised Funds Provide the Majority of Grant Funds Awarded by Community Foundations (21 pages, PDF), DAF’s had an estimated $31 billion in assets in 2007, the majority of which ($16.5 billion, or 53 percent) was held by community foundations in some 49,000 funds. In addition, the payout rate from community foundation DAF’s was three times the payout rate for non-donor advised funds – 16.4 percent versus 5 percent. The report also found that more than half the grant dollars awarded through DAF’s were used to support education or human services activities.

In comparison to other funds, a higher proportion of grant dollars from DAF’s was used to support international affairs, development and peace, and religious activities, while a slightly lower proportion of DAF dollars went to arts, health, and areas such as social sciences.