Philanthropy in America is undergoing a profound shift.
As traditional funding sources tighten and demand for charitable support rises, donors and advisors are rethinking how to give more strategically.
Suleman Din: Fred, let’s start with the big picture – what’s happening in philanthropy right now?
Fred Kaynor: Philanthropy in the U.S. is going through a period of remarkable change. Individuals and families remain deeply committed to giving, but the landscape itself is shifting. Many nonprofits have lost what used to be reliable, institutional funding sources – especially government-related support – so there’s increased pressure to find new ways to close those gaps.
What we’re seeing is donors stepping up. They’re becoming more thoughtful, more strategic, and more focused on maximizing the impact of every dollar. The need has never been greater, and donors are responding accordingly.
Din: How is that changing the role of financial advisors?
Kaynor: Advisors are increasingly being asked to help clients with philanthropy in the same way they help with investments or retirement planning. In fact, Schwab’s latest RIA Benchmarking Study found that 86% of advisors see charitable planning as a way to differentiate their practice.1
That’s a big shift. High-net-worth and ultra-high-net-worth clients want structured, tax-efficient ways to give – and they want guidance. That’s where solutions like DAFs come in.
Din: For those unfamiliar, what exactly is a donor-advised fund – and why is it gaining traction?
Kaynor: At its core, a donor-advised fund is a charitable giving account that is simple, flexible, and highly tax-efficient. It operates in three key steps. First, donors contribute assets such as cash, appreciated stock, real estate or even private business interests, receiving a fair-market-value tax deduction while avoiding capital gains tax. Next, those assets can be invested for potential growth, increasing the amount available for future giving. Finally, donors recommend grants to charities whenever they choose – whether immediately, over time or as part of a long-term legacy plan. Overall, it’s an efficient, low-cost solution that can be adapted to a wide range of philanthropic goals.
Din: How flexible is that structure in practice?
Kaynor: Extremely flexible. Donors can set up recurring grants – essentially a “set it and forget it” approach – while also retaining the ability to respond quickly to crises such as natural disasters or humanitarian needs. They can build long-term legacy strategies that involve family members and support multiple charities over time. That level of flexibility is one of the biggest reasons adoption is growing so quickly.
Din: Are you seeing any notable trends in where or how people are giving?
Kaynor: Yes, a few important trends are emerging. Giving is increasing significantly – we’ve seen a 34% year-over-year rise in grantmaking, with $8.9 billion distributed, including $6 billion through advisor-managed accounts. At the same time, donations are being spread more broadly, reaching over 155,000 charities across sectors such as education, healthcare, humanitarian aid and the arts. Another key shift is that donors are placing fewer restrictions on their gifts, opting instead for unrestricted funding that allows nonprofits to direct resources where they’re needed most. That last point is especially impactful, as it gives organizations much greater agility.
Din: How are donor-advised funds helping address funding gaps left by government cuts?
Kaynor:
They’re becoming a critical bridge. As traditional funding sources decline, nonprofits are turning more to private philanthropy – and DAFs provide a highly efficient vehicle for channeling those funds.
At the same time, awareness is growing. Both donors and nonprofits are recognizing DAFs as a powerful way to mobilize capital quickly and effectively.
Din: What about due diligence? How do you ensure funds go to legitimate causes?
Kaynor:
We start with the IRS – organizations must be verified 501(c)(3)s in good standing. On top of that, we conduct our own due diligence, monitoring for investigations or compliance issues. If there’s any concern about misuse of funds, we can pause grantmaking until issues are resolved. There’s a real responsibility to ensure funds are used for true charitable purposes.
Din: What advice would you give to an advisor just starting the philanthropy conversation with clients?
Kaynor: Start simple by asking thoughtful, open-ended questions such as whether the client is facing a significant tax event, whether they’ve considered more efficient ways to give and what causes matter most to them. From there, the goal is to build a structured plan. We provide tools – like our Giving Guide – that help advisors and clients think through key decisions, including what to give, when to give, how much to give, and which vehicles to use. Ultimately, it transforms philanthropy into a strategic, repeatable process.
Din: There’s growing competition from digital-first platforms. How do you view that?
Kaynor:
Any platform that raises awareness of donor-advised funds is a positive. More awareness means more giving.
Different platforms may specialize in niches – like impact investing – but our focus is on delivering a low-cost, highly efficient, and scalable solution for both advisors and clients. And we’re continuously evolving to meet modern expectations.
Din: Final question, how is the next generation changing philanthropy?
Kaynor: They’re redefining it. Younger donors are more engaged, more intentional and more focused on impact throughout the entire giving lifecycle. They care not just about where money goes, but also how it’s invested before being granted, whether it aligns with their values and what measurable outcomes it produces. They’re also embracing innovative tools like impact investing and even recoverable grants – essentially philanthropic loans to early-stage nonprofits. It’s a much more hands-on, outcome-driven approach and it’s shaping the future of philanthropy.
As philanthropy adapts to a world of shrinking institutional support and rising global need, donor-advised funds are emerging as a powerful connector – linking wealth, strategy and purpose. For advisors and families alike, the opportunity is no longer just to give – but to give smarter, faster and with greater impact than ever before.
1. 2025 RIA Benchmarking Study from Charles Schwab