The DAF Opportunity: Time to Act
Unless you’ve been dozing for the last decade, you know that there’s been a remarkable transformation in how many Americans are giving to charity.
We are, of course, talking about DAFs — donor-advised funds. Over the last several years, these vehicles have gone from relative obscurity to a major force in American philanthropy. Nearly 2 million people now use DAFs — and billions of dollars flow from them to nonprofits every year.
Great news, right? Or … maybe not so fast.
For fundraisers, after all, the shift to DAFs has created some real challenges. DAF gifts can be difficult to track. The name of the person who recommended the grant may not always come through with the gift. Organizations sometimes struggle to connect a DAF grant with the donor behind it, making recognition and stewardship more complicated. And too many nonprofits still aren't making it particularly easy — or particularly obvious — for donors to give through their DAFs.
But the bottom line is this: For all of the challenges, DAFs represent an enormous fundraising opportunity.
And right now may be an extraordinarily good time to seize it.
Changes in federal tax law prompted a surge of giving into DAFs at the end of 2025, as donors moved to take advantage of more favorable tax treatment before the new rules took effect. That means there is an extraordinary amount of charitable money in DAF accounts right now, ready to be put to work.
The money is there — the question is who gets it
One of the most important things to remember about a DAF is also one of the simplest:
The money is already charitable money.
When donors contribute assets to a DAF, they receive their tax deduction then and there. The money is irrevocably committed to charity. They can’t change their minds six months later and use it for a vacation or a new kitchen.
Their remaining decision is: Which charities should receive it?
That makes DAF holders a particularly interesting audience for fundraisers. You aren't necessarily trying to persuade someone to part with another $500 or $5,000 from their checking or investment account. You're asking them to put money they've already set aside for charity to work for your mission.
And DAF fundraising is no longer just about the very wealthy.
In fact, a recent study found that two-thirds of DAF gifts are under $1,000. DAF donors are increasingly showing up at giving levels that are very much part of traditional annual giving programs.
These donors may already be sitting in your donor file.
The challenge is finding them — and giving them a reason to think of you.
DAF Day gives us our opening
That's where DAF Day — this year, Thursday, October 8 — comes in.
DAF Day is still quite new. Launched in 2024, it gives nonprofits something fundraising programs love: a natural reason to communicate with donors.
The message doesn't need to be complicated:
If you have a donor-advised fund, would you consider recommending a grant to support our work?
For donors who have been meaning to make distributions from their funds, a simple reminder may be surprisingly powerful.
But don’t think about DAF Day as a one-day campaign. Think of it as the beginning of a focused DAF push that continues and crescendos at year-end—when donors are already thinking about philanthropy and nonprofits are communicating with them more frequently.
So what should fundraisers do now?
You don't need to build an elaborate new DAF fundraising program between now and year-end. But there are several things almost every organization can do.
Start by identifying the DAF donors you already have. Review your records for grants from Fidelity Charitable, DAFgiving360, Vanguard Charitable and community foundations. When you can identify the individual behind a grant, make sure that relationship is captured in your database and that the donor is being properly thanked and stewarded.
Make DAF giving visible. Don't bury information about DAFs three clicks deep on your website. Mention DAF giving in email, direct mail, digital communications, reply devices and year-end fundraising. Include your organization's legal name and EIN where they're easy to find.
Ask explicitly. Don't assume donors will make the connection themselves. A simple line — “If you have a donor-advised fund, please consider recommending a grant” — can be incorporated into existing communications without overwhelming the primary appeal.
Make giving easy. Consider whether a DAF giving tool or widget makes sense on your website. At a minimum, donors should be able to quickly find the information they need to recommend a grant through their DAF provider.
Steward these donors as donors. A grant may arrive through a DAF sponsor, but the sponsor isn't your donor. Whenever the individual who recommended the grant is known, recognize and cultivate that person accordingly.
And it’s worth saying again: Don't stop talking about DAFs after DAF Day. Include them in your year-end strategy, particularly in the final weeks of December.
Make change your friend
There’s no shortage of change confronting fundraisers these days.
Donor behavior is changing. Technology is changing. AI is changing how organizations communicate, analyze data and reach supporters. And DAFs have fundamentally changed the way a growing number of Americans manage their charitable giving.
It can be exhausting trying to keep up with all of it.
But we don't need to chase every new idea that comes along. We do need to recognize the changes that matter — and figure out how to turn them into opportunities.
DAFs are one of those changes.
And this fall is a particularly good time to act.
Harry Lynch is CEO of Sanky Communications. He gratefully acknowledges Julie Ziff Sint, Barbara Eckstandt, and the rest of the Sanky team for their contributions to this article.
