2025 Charitable Giving Overview
Charitable giving experienced an increase in 2025, attributed to strong stock market returns and tax reform.
DAFgiving360, a prominent administrator of donor-advised funds, reported that its donors granted a record $9.9 billion to charities in 2025. This figure represents an increase of $2.2 billion, or 28%, compared to the previous year.
Role of Donor-Advised Funds (DAFs)
Donor-advised funds (DAFs) allow donors to contribute cash or assets and receive an immediate tax deduction. These funds offer donors the flexibility to determine how and when to distribute their gifts to charities at a later time.
DAFs simplify the process of donating appreciated assets, such as stocks or other non-cash assets, enabling donors to avoid capital gains tax. Assets held within DAFs can continue to appreciate until grants are made to charitable organizations.
Non-Cash Contributions Soar
In 2025, a record 74% of contributions were made in the form of non-cash assets. These assets included exchange-traded funds (ETFs), index funds, real estate, and cryptocurrency.
"DAFs are effective in assisting individuals with appreciated or difficult-to-liquidate assets, allowing them to establish a portfolio and a structured plan for charitable distributions over time," stated Julie Sunwoo, president of DAFgiving360.