Last year was, by nearly every measure, a hard one for Philadelphia’s nonprofit sector. Federal policy changes introduced substantial uncertainty into the funding landscape, putting pressure on organizations already operating on thin margins and forcing many to make difficult decisions about programs, staffing, and the communities they serve. For nonprofits that depend on federal grants, contracts, or tax-credit-driven revenue, 2025 brought a level of disruption that few had planned for.

Against that backdrop, something notable happened: donors with funds at Philadelphia Foundation stepped forward. In significant and measurable ways, our DAF donors read the moment and responded to it. The numbers tell a clear story, and we think it’s worth pausing to reflect on what they mean.

A Year of Meaningful Growth

Across all fund types, Philadelphia Foundation distributed approximately $83 million in 2025, representing a 28% increase over the prior year. That growth was driven in large part by donor-directed giving through DAFs, which rose by nearly 41% year over year, reaching $32.4 million. This represents philanthropic resources that donors actively put to work at a time when the region’s nonprofit sector needed them most.

That kind of responsiveness reflects something important about what it means to have a giving vehicle rooted in a community foundation. When the community needs more, our donors already have the infrastructure in place, our expertise to help them understand the landscape, and our relationships to give more, quickly and with confidence.

Where the Giving Went

DAF distributions in 2025 reached across every major cause area. Human Services drew the single largest share of donor-directed giving, followed by Arts & Culture, which saw a particularly striking surge. DAF grants in Arts & Culture exceeded $10 million, more than three times the 2024 level and more than four times the 2023 level. Health, Education, Public & Community, and Environment all saw meaningful DAF investment as well.

The breadth of that giving reflects the diversity of our donor community and the range of causes they care about. It also reflects the reality that the federal funding disruptions of 2025 did not hit just one sector. The uncertainty was wide, and donors responded in kind.

Why a DAF at Philadelphia Foundation Is Different

A donor advised fund is a powerful vehicle under any circumstances. But a DAF housed at a community foundation like Philadelphia Foundation offers something that a national financial platform may not be able to such as deep and current ground-level knowledge of the organizations doing the most important work in the region.

When a DAF donor at Philadelphia Foundation wants to direct a grant, rather than navigating an algorithm or working from a national database, they have access to our team’s direct relationships with nonprofits across Greater Philadelphia, built over more than a century of presence in this community.

Through our long-term relationships with nonprofits throughout the region, our Donor Relations department knows which organizations are well-led, financially sound, and positioned to put resources to work quickly and effectively.

This matters especially in moments like 2025, when the landscape is shifting quickly. Knowing which organizations are navigating uncertainty with resilience, and which are most in need of bridge support, requires exactly the kind of embedded community knowledge that Philadelphia Foundation has spent decades building. Our donors benefit from that knowledge every time they make a grant recommendation.

One of the things we observed in 2025 is that when donors give together through a shared platform, the impact compounds. Our Donor Services team tracks patterns across our entire portfolio, identifies gaps and overlaps, and can help individual donors see where their giving connects to a broader effort. That type of coordination is what a community foundation makes possible, and it is part of what makes a DAF at Philadelphia Foundation a more intentional form of giving than a fund held elsewhere.

An Invitation

If you are an existing DAF holder at Philadelphia Foundation, what happened in 2025 is, in no small part, a reflection of your generosity and your trust in this community. Thank you for meeting the moment.

If you are considering establishing a donor advised fund, or consolidating a fund you hold elsewhere, we hope the 2025 data offers a concrete picture of what is possible when philanthropic resources are paired with deep community expertise. The need in Greater Philadelphia is real and ongoing. Our team is ready to help you put your giving to work in ways that reflect your values and make a lasting difference.

To learn more about starting a DAF at Philadelphia Foundation, contact [email protected].