If you gave to charity or helped someone pay it forward last year, you’re in good company: More than 322,000 Americans recommended 2.3 million grants to charity through Fidelity Charitable® in 2023, according to our annual Giving Report. These donors bolstered nearly 199,000 nonprofits through the donor-advised fund (DAF), proving that smarter giving not only matters to Americans, its prominence is growing.

In a 10-year look-back over rocky markets and a global pandemic, the DAF and the adoption of smarter giving practices that maximize philanthropy are quickly becoming a critical part of holistic wealth management. In fact, investors are increasingly rounding out their financial toolbox of IRAs and 529 plans with the DAF.

Keeping this in mind, here are six trends shaping philanthropy today:

  1. Donors are staying the course … The economy is always a consideration—and this year was no different as concerns continued—but the impact of smarter giving steadily continued to grow with donors leaning into the DAF as a sustaining force for philanthropy. Fidelity Charitable® donors recommended an average of 11.8 grants per DAF, also known as a Giving Account®, last year, with an average grant size of over $4,600. As a collective, our donors recommended $11.8 billion in grants to charity in 2023.
  2. . ... with loyal and open support.
    Americans have favorite charities they’ve been giving to for years and have proven to be steadfast to the causes that move them: In 2023, nearly 80% of grants went to charities donors had previously supported. Most grants (96%) included the account name or the recommending donors’ names and addresses.
  3. Giving comes in all shapes and sizes across the wealth spectrum.
    With no minimum to open an account, more than half of Giving Account® balances were under $25,000 and just 10% greater than $250,000.
  4. Savvy donors are leveraging long-term appreciated assets. Cash isn’t always king. By donating appreciated stock, many Americans are giving more to charity than if they sold the stock and then made a cash donation.
  5. Participation in impact investing is growing rapidly. Maybe it’s the sway of younger investors. Maybe it’s the influence of current events. Whatever the reason, interest in finding ways to make giving dollars go further is on the rise. One example: Not only has the amount of funds in Fidelity Charitable DAFs invested for impact nearly tripled in the past five years, grants to impact-investing nonprofits have nearly doubled, to $70.4 million. These charities have missions that may include supporting social enterprises, microfinance, or community development, and returns generated by the organization’s work may be recycled to enable new investment.
  6. Companies are reaching their employees through values-based giving programs. Most employees (86%) say it’s important to work for an employer with values that align with their own, particularly Millennials (91%), who are now the largest generation in the workforce.1 Companies are responding: More than 500 corporate donor-advised funds actively recommended an average of 65 grants each in 2023.

Read the full article about trends in philanthropy by Karla D’Alleva Valas at Forbes.