Donor Advised Fund

• What is a Donor Advised Fund (DAF)?

  • A donor advised fund (DAF) is a charitable giving vehicle that allows donors to make a tax-deductible contribution to a sponsoring organization, and then recommend grants from the fund to their favorite charities over time. 

  • Any person, couple, family–or even company–can open a DAF account at more than 1,000 providers around the country. DAFs have surged in popularity in recent years because they are incredibly effective at increasing giving capacity and streamlining philanthropy.​​

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• Donor advised funds (DAFs) can be incredibly beneficial for organizations like the U.S. Climate Action Network (USCAN). 

  • Significant Financial Support: DAFs often hold substantial assets, allowing for larger donations than individual donors might typically give. This can translate into significant funding for USCAN's programs and initiatives. For example:

    • Resourcing collaboratives and frontline leaders through the Catalyzing Grants initiative, where annually we’ve given between $500,000 - $750,000 per year. With a large donation, we have the potential to move more resources over longer periods of time to more critical work. 

    • Creating opportunities for members, allies, and, more broadly, civil society participants can learn, share, strategize, and collaborate. This includes coordinating pavilions in the global climate policy negotiations, providing greater support for USCAN international delegations to include more frontline leaders so that their voices can be heard, providing the infrastructure to convene and facilitate working groups on an ongoing basis, and more.  

    • Staffing up to ensure that USCAN has the capacity to do its part to meet the urgency and scale of the climate crisis.

    • Meeting ambitious goals that include advocating that the United States pay its fair shares of the soon to be defined finance goals at COP29.

  • Strategic Grantmaking: DAF advisors often have expertise in philanthropy and can guide donors towards impactful giving. This can lead to more strategic allocation of funds towards USCAN's most pressing needs. 

  • Long-term Funding: DAFs can be structured to provide ongoing support work over time, ensuring a more sustainable funding stream for USCAN's long-term goals and projects.  Currently, our eyes are set on raising sufficient funds to get us to 2030 plus 1.  The plus 1 will be the transition year for us that includes implementing a new strategic plan or other area of work that emerges from a consultative process. 

  • Tax Benefits for Donors: Donors receive immediate tax benefits when contributing to a DAF, which can incentivize larger contributions to USCAN.  

  • Flexibility and Responsiveness: DAFs allow for quick and flexible disbursement of funds, enabling USCAN to respond nimbly to emerging climate challenges and opportunities. In an ever shifting landscape, we do not know what we will face. We want to be ready.

  • Diversified Funding: Attracting DAF support can help USCAN diversify its funding base, reducing reliance on any single source and increasing financial stability.

  • Enhanced Credibility: Receiving grants from reputable DAFs can enhance USCAN's credibility and attract additional funding from other sources.

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Specifically for USCAN, DAF support could be transformative in:

• Scaling up advocacy efforts: Funding critical campaigns to influence policy and drive climate action at the national and state levels.

• Expanding grassroots organizing: Empowering local communities to demand climate solutions and build a powerful movement for change.

• Investing in research and analysis: Providing policymakers with the data and evidence needed to make informed decisions on climate policy.

• Supporting frontline communities: Directing resources to communities disproportionately impacted by climate change, ensuring equitable solutions.  

• Advancing clean energy initiatives: Promoting the transition to a just and sustainable energy future.

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