Building 21st Century Nonprofit Capital Markets: The Role That Donor-Advised Funds Could Play

Abstract

The structure and sources of capital available to nonprofit organizations largely fail to meet the financial needs of the sector. Given the dramatic growth of both the nonprofit and philanthropic sectors, the time to reinvent the “nonprofit capital markets” is now, and donor advised funds should play a leadership role in this process. This article outlines policies and practices with the potential to create new efficiencies in the delivery and investment of capital for the common good.