Larger community foundations tend to maintain relatively complex operating models, requiring a higher number of specialized staff who will be less likely to manage donor funds. (n=173)

The field median expense to asset ratio decreased slightly in 2020 from the year before (1.2 percent in 2019), though the median for small community foundations increased significantly over that same time, from 1.6 percent to 2.0 percent. As is generally the case, larger community foundations achieve an economy of scale that results in typically lower ratios than for smaller community foundations, though operating model differences at individual community foundations will have an impact on this metric. (n=168)

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Just over one quarter of all annual survey participants reported any level of operating deficit in 2020 - which is unchanged from the year prior. For these community foundations, and more generally, operating deficits are covered by unrestricted funds, which limits their flexibility to invest in foundation-operated initiatives and community leadership.

Administrative fees are the main source of community foundation operating revenues field-wide. Larger community foundations are more likely to supplement fees with fee for service revenues, while smaller community foundations tend to do more direct fundraising to support operations. Community foundations often seek to generate surplus revenues that could be reinvested into community leadership initiatives.

Averages were used to total 100%. (n=168)

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Over three-quarters of respondents said that they will first attempt an appeal to a DAF holder to activate the fund after a predefined period of time after which the fund is considered dormant. Follow-up step are often included in the donor's original fund agreement; many said that those steps included one or both of distributing DAF dollars in alignment with the donor's original intent and transferring the funds into the community foundation's unrestricted funds.

Nearly all said they considered a DAF to be dormant if no grant is recommended within five years, with three-quarters considering a DAF inactive after three years. Although few in number, there were instances of the community foundation considering a DAF to be dormant after 10 or more years of inactivity, in cases where a donor establishes the fund with the intention of building its balance to activate the fund toward more impactful grantmaking in the future. (n=179)

DAFs at community foundations tend to be highly active grantmaking vehicles; more than half of all respondents reported distribution rates from DAFs in excess of 10 percent. With typically higher proportions of pass-through funds available for granting, larger community foundations tend to report higher distribution rates overall.

Sample size for DAF distribution rates are slightly smaller (n=189) than for the whole foundation (n=211).

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High median DAF flow rates in every asset cohort reflect high rates of grantmaking that keep pace with fundraising.

More than one-third of 2020 Annual Survey respondents reported DAF flow rates of over 100%, granting more from their DAFs than those funds brought in as gifts. (n=179)

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