<ul><li>The endowment effect, a phenomenon widely recognized in behavioral economics, leads individuals to put a premium on assets merely because they own them.</li><li>Donor-Advised Funds (DAFs) can be affected by the endowment effect, causing emotional attachment to assets and delaying grant recommendations.</li><li>The underutilization of DAF assets, due to this effect, represents a significant opportunity cost in terms of delayed investments in critical sectors.</li><li>Addressing this challenge requires both structural reforms, such as incentivizing timely grantmaking, and reframing the narrative around DAFs as active engines of social innovation.</li></ul>

If Donor-Advised Funds are so Great, Why Aren’t They Working?

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