Philanthropy has the power to create significant meaning in our lives and others, but with increasingly tighter regulations and legal responsibilities it can feel increasingly daunting.
The idea that philanthropy can be done casually has long gone.
Shifting attitudes to giving and the desire for greater flexibility and impact, is high on the list, particularly where it comes to younger generations of philanthropists. There is a simple solution.
In this new landscape Donor Advised Funds (DAFs) have become an increasingly attractive solution. In the United States, DAFs are a well-established part of the charitable landscape - and while the UK market started smaller, it has been growing quickly. Charitable assets held in UK DAFs have recently reached around £3.1 billion, an all-time high, with grants to charities continuing to rise year on year.
Since 2020, global crises have led to increased giving through DAFs, as they offer flexibility and help donors navigate increasingly complex giving rules. At the same time, the Charity Commission continues to tighten regulation, making trusted infrastructure and compliant giving routes more important than ever. Alongside this, a number of high-profile charity failures and investigations have sharpened the focus on governance, accountability and compliance.
As a result, giving has become more complex. Effective philanthropy now requires a strong understanding of charity law, grant-making rules, due diligence and reporting, HMRC has regulations around tax-effective giving, and the policies charities must have in place, from safeguarding and privacy to whistleblowing are detailed.
So where does this leave individuals and families who want to give responsibly, but don’t have the time or appetite to manage that complexity themselves?
For many, Donor-Advised Funds (DAFs) offer a practical and trusted solution.
DAFs are charitable accounts held within an established charity, such as Prism the Gift Fund. Donors make charitable donations, if eligible, claim tax relief, and then recommend grants to charities in the UK and around the world. Rather than setting up and running their own charity or foundation, donors can open a DAF, name it after themselves or their family, or choose to remain anonymous - while Prism takes care of governance, compliance and reporting.
Increasingly, banks, investment manager, law firms and accountants in the UK are recognising the value of DAFs.
For clients who want to set up endowments, give significant amounts and spread the giving out over years without the administrative burden of setting up a charity, DAFS are hugely appealing.
As awareness of DAFs grows, so too does engagement in philanthropy.
Making tax-effective giving simpler
There are well-established tax incentives for charitable giving, whether through cash, shares, property, crypto-currency or art. In addition, leaving at least 10 per cent of an estate to charity reduces the rate of inheritance tax on the remainder from 40 per cent to 36 per cent.
Once people understand these options, they often become more confident and proactive in their giving. A Donor Advised Fund can accept all of these asset types, helping donors manage complexity while focusing on the causes they care about.
The decisions to give are as personal as they are layered sometimes a combination of tax efficiency with philanthropic giving. For instance, we work with many people who suddenly find themselves with a significant financial gain–for example after selling a business or receiving an inheritance – they want to support causes they care deeply about and balance this with a powerful long-term giving structure with tax-efficiencies.
Giving globally, with confidence
Philanthropy is increasingly global. Families are more internationally mobile, charities operate across borders, and donors often want to support causes beyond the UK. At the same time, regulatory requirements around international giving have become more demanding.
To reflect this shift we developed new services that support cross-border philanthropy – the Dual Qualified Structure Service and Myriad Alliance membership. These include structures designed specifically for individuals with tax exposure in both the UK and the US ad other jurisdictions, making global giving simpler.
Engaging the next generation
Alongside this sits a growing focus on next-generation philanthropy. Many families want younger members to feel involved and responsible, rather than simply inheriting a legacy of giving.
Shared giving through next-generation circles is becoming more common, often operating as Collective Funds within a structure such as Prism. This approach allows families and friends to come together around shared objectives, without the administrative burden of setting up a new charity.
Prism’s unique Collective Fund model is highly flexible and can be structured in many different ways, including In Memory funds, which allow friends and families to honour those they love while supporting causes close to their hearts; Operational funds, which can deliver support and services quickly in times of crisis; and British Friends Of funds, which enable people to support international causes confidently and tax-efficiently.
Even where families have their own foundations, there is often limited space for second, third or fourth generations to act as trustees. Donor Advised Funds can provide a practical way to involve them, encourage responsibility and build a lasting culture of giving.
In 2025, Prism marked a major milestone, having raised over $1 billion and distributed more than $600 million to charitable causes globally.
Twenty years on, we have worked with some incredible innovators, changemakers and donors, developing new and exciting ways of giving. What remains constant in our work is the importance of human connection, trust and partnership. At our 20th Anniversary celebration event at Christie’s last summer, I had the pleasure to see the results of this work and hear from those engaging more deeply with charities and experiencing the impact of their giving as a meaningful and enriching part of their lives.
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