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DAF Payout % Report

There needs to be a report that calculates each Donor Advised Fund's percent payout year over year. With the proposed legislation, it is important for community foundations to be able to show the active philanthropy of their DAFs as well as to encourage more active grantmaking in DAFs that are below a certain threshold.

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Anonymous shared this idea  ·   ·  Report…  ·  Admin →
Implemented  ·  AdminSkye Weber (Admin, Foundant Technologies) responded  · 

Funds: Added a Fund Payout Report. Once a filtered list of fund is selected, this option will be located in left hand menu with bulk actions. Once the Fund Payout Report is selected user will select a calculation date and Payout formula. Grant payout formulas: Candid Method is based on grants made this year divided by assets held at the end of last year. One Year Method is this year’s grants divided by this year’s end-of-year assets plus this year’s grants, on the assumption that all money in a DAF at any point of the fiscal year was available for grantmaking.  3-Year Averaging of Assets to Last Year (LY) is grants this year divided by the average value of assets last year, the year before last, and two years ago. 5-Year Averaging of Assets to Last Year (LY) is grants this year divided by the average value of assets from five year ago to last year. For 2024, this means grants made in 2024 divided by the average of assets held at year-end in 2019, 2020, 2021, 2022, and 2023.  


Custom Reports: Added a Fund Payout Report to report that include funit. Once a report with a filtered list of funds are selected, this option will be located in left hand menu with bulk actions. Once the Fund Payout Report is selected user will select a calculation date and Payout formula. Grant payout formulas: Candid Method is based on grants made this year divided by assets held at the end of last year. One Year Method is this year’s grants divided by this year’s end-of-year assets plus this year’s grants, on the assumption that all money in a DAF at any point of the fiscal year was available for grantmaking.  3-Year Averaging of Assets to Last Year (LY) is grants this year divided by the average value of assets last year, the year before last, and two years ago. 5-Year Averaging of Assets to Last Year (LY) is grants this year divided by the average value of assets from five year ago to last year. For 2024, this means grants made in 2024 divided by the average of assets held at year-end in 2019, 2020, 2021, 2022, and 2023.  

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  • Mandi commented  ·   ·  Report

    What is the standard calculation requirement (meaning, how do the private Foundations calculate this)? I am sure the IRS may have some guidance as well? When I did a quick google search - I found a few that said, "calculates payout rate as this year's grants divided by last year's year-end assets." I also found perhaps a average rate by multiple years is calculated - so like a 3Year or 5Year average.

  • Michelle Schneider commented  ·   ·  Report

    There are different methods for calculating and our team usually leans toward the Candid method, but there may be a need to support more than one option…

    DAF grant payout formulas:
    • Candid Method is based on grants made this year divided by assets held at the end of last year.
    • One Year Method is this year’s grants divided by this year’s end-of-year assets plus this year’s grants, on the assumption that all money in a DAF at any point of the fiscal year was available for grantmaking.
    • 3-Year Averaging of Assets to Last Year (LY) is grants this year divided by the average value of assets last year, the year before last, and two years ago.
    • 5-Year Averaging of Assets to Last Year (LY) is grants this year divided by the average value of assets from five year ago to last year. For 2024, this means grants made in 2024 divided by the average of assets held at year-end in 2019, 2020, 2021, 2022, and 2023.

  • Anna Wagner commented  ·   ·  Report

    To answer Holly's question, I think a base would probably be best at average fund balance for the period presented.

    Potential columns could be Funit ID, Fund Name, Average Fund Balance for period, Total Grants for period, % Payout. Fund open date and Total Donations may be helpful too....