How Philanthropists can use social impact investment to help the money gifted to their Donor Advised Fund go further

Big Society Capital has released new guidance on making social impact investments from Donor Advised Funds (DAF), which can be an attractive alternative to establishing a family foundation: Maximising Your Philanthropy: A guide to Social Impact Investment and Donor Advised Funds.


The Donor Advised Funds (DAF) guide has been produced to inspire more donors to maximise their philanthropy by investing for social impact from their DAF alongside traditional investments and grants. 

Katie Fulford-Smith, Engagement Manager, Big Society Capital, said:

“Donor Advised Funds are growing in popularity in the UK and offer philanthropists an attractive alternative to setting up a charitable foundation. However, many donors are missing out on the opportunity to increase the impact of their philanthropy which can be achieved by making social impact investments. Once money is gifted to a DAF account, it can be used for social impact investments alongside traditional investments. The return from social impact investments can be recycled back into other social impact investments or be used for grant making in the future. We hope that this guide will inspire more philanthropists to consider making social impact investments from their DAF, as we believe huge positive impact could be achieved if more capital is mobilised in this way.”




Big Society Capital improves the lives of people in the UK by connecting social investment to social enterprises and charities  We know that investment can help social enterprises and charities achieve more. We believe the greatest chance to improve lives comes when investors and enterprises are both motivated by social mission.

We engage with investors, fund managers, social enterprises and charities to make it easier to use social investment. With our co-investors, we have made over £1.7bn of new capital available to organisations with a social mission through investments into fund managers and social banks. We have a special focus on: providing homes for people in need; supporting communities to improve lives; and early action to prevent problems.


Kathryn Mortimer, Press Officer, Big Society Capital

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