The growth of Donor Advised Funds in the UK
Donor advised funds originated in the USA in the 1930s. Since then, variations on the American DAF concept have arrived in the UK, with the first one, the CAF Charitable Trust, being introduced in the 1970s. That trust shared similar characteristics with an American DAF but with greater flexibility, donor choice, and investment options. The market for tax-efficient giving vehicles, like the DAF, has grown significantly in the UK ever since.
At an overall level, donor advised giving has grown over the last few years, with increased popularity within the UK – something which providers expect to continue. This growth is evident by the contributions made to funds. Overall, there has been a 51% increase in contributions over the period 2013/14 – 2015/16. In turn, funds transferred to a chosen charity have also continued to grow; whilst total charitable assets held within the funds have exceeded £1 billion amongst the nine main providers in the UK.