The role of donor advised funds in meeting pandemic needs

August 25, 2020

By Jamie Schloegel, Chief Executive Officer

Partnering for a strategic pandemic response

Each year, the donor advised funds at LCF infuse over half a million dollars into the revenue streams of local nonprofits. And the nonprofits that benefit are entirely up to each fund holder.

But in this incredibly challenging pandemic year, many donor advisors are reaching out to see how their dollars can be used most strategically to ensure the nonprofits they really care about survive COVID-19.

Giving on par with national pandemic trends

According to a report from Fidelity Charitable, giving has surged during the coronavirus crisis, eclipsing donations during the 2008 recession and after the September 11 terrorist attacks. And much of this giving is coming from donor advised funds.

Donor advisors across the country are making grant decisions early and strategically. Some are making more gifts than usual to help both nonprofits serving people who are suffering incredible financial hardship because of COVID, and their favorite local arts organizations who won’t have reliable revenue streams for a long time, despite a relentless accumulation of fixed expenses.

Working with a community foundation to maximize impact

One benefit of having a donor advised fund with a community foundation is the donor’s ability to reach out and get customized advice on who to help based on their priority areas. And at a time when some donors are feeling paralyzed by the uncertainty this pandemic brings, a quick call to your LCF staff can really help bring focus and direction to your charitable giving goals for the year.

Donor advised funds are consistent, reliable resource for charity

Donor advisors are in an incredible position to help meet pandemic needs. Regardless of how COVID has personally affected the financial situation of each fund holder, the amount of dollars available to give from their fund annually is reliable and stable. And the team at LCF is always available to share what we know about who could use help most to those who reach out for advice.

And many have.

LCF’s donor advisors are helping with Emergency Survival Grants

In the last competitive grant round, which typically does not use donor advised funds to award grant requests, we had nearly $700,000 requested and just over $250,000 available to give. LCF’s donor advisors came to the rescue by infusing another $48,000 into the grant pool to help fund more requests from our local nonprofits.

Additionally, many have given from their funds to the La Crosse Area Emergency Response Fund that we began in March in partnership with Great Rivers United Way. That fund was started to help front-line nonprofits quickly assist those who need help most during the pandemic.

Donor advised funds are an incredibly sustainable, flexible, and reliable source of community capital, and because of so many caring fund holders who make such thoughtful funding decisions, donor advised funds are helping our local nonprofits survive the pandemic.