What are donor-advised funds (DAF)?
Well, donor-advised funds are a popular choice for donors to give to their favorite charities. Tax deductions can be taken as soon as a donor puts money into a DAF, and the fund can grow until the donor decides where the money should go.
As an experiment, I tracked the donor stewardship practices of 16 of the top 25 charities for Fidelity Charitable donors, for over a year. I sent in my own $100 grants via my Fidelity Charitable account and tracked what kind of acknowledgements and follow up communications I received. (None of these organizations are NCDC members.)
Here’s a quick breakdown of my expectations and my observations.