Donor Advised Funds Series, Part 3: The Role of a Philanthropic Advisor

There is a growing industry in the philanthropic world.

And I don’t mean Donor Advised Funds (DAFs)—although they are growing exponentially in number and value. According to the most recent Annual DAF Report, in 2024, the number of DAF-sponsoring organizations reached nearly 1,500, the number of DAF accounts grew by 18.4% to 3.56 million accounts, and the assets undermanagement not yet directed grew to $326.45 billion. (This kind of data is why we wrote about the role of Relationship Fundraisers and the back office in this area.)

Instead, I want to focus on the growing role of Philanthropic Advisors.

As a reminder, the staff at a DAF-sponsoring organization is focused on helping donors use their assets in ways that maximize tax efficiency, including funding a DAF. They do not advise donors on which charities to support, and they generally won’t engage directly with a Relationship Fundraiser. In most cases, their involvement is limited to passing along an acknowledgment letter or impact report, especially when donor contact information is unavailable or the gift is anonymous.

That role is very different from a Philanthropic Advisor, which is where the confusion often comes in.

A Philanthropic Advisor’s job is to help donors decide where to direct their charitable dollars, including directing grants out of their DAF. This role may exist as a solo practice, a standalone 501(c)(3), or as a distinct division within a DAF-sponsoring organization. Philanthropic Advisors integrate financial and legal considerations with research on non-profit effectiveness and outcomes, helping donors align their giving with impact, results, and return on investment.

They help the donor to focus on what they want to see happen as a result of their philanthropy. What change they want their philanthropy to bring about. It’s sort of like a Major Gift Officer, but they represent all the organizations a donor supports, not just one.

A few names you may be familiar with: Excellence in Giving, Renaissance Philanthropy, Aqueduct Foundation, Rockefeller Philanthropy Advisors, or Bridgespan.

If you are seeing gifts come in from this kind of organization, it’s possible you can engage with the advisor. It’s more likely they will reach out to you for reporting or ask questions for their due diligence process.

If your organization is tracking DAFs as a Donor Type, one thing you can do is export that list and do some research to identify which of these may actually be Philanthropic Advisors. You can sift out the obvious true DAFs like Fidelity, Schwab, or Vanguard Charitable, or others you recognize readily. Then take time to research those you don’t know. If you learn they are a Philanthropic Advisor, work with your database manager to get the Donor Type updated as a separate type so you can find these more easily.

From there, you can connect back with your donor to ask if they are open to talking about how they engage with their Philanthropic Advisor and how you can assist them. Fidelity has a good guide to help you think this through. Things to learn include: are you using your advisor to make an annual giving plan? A long-term plan? A plan that includes family or heirs? Do they prefer to focus on specific project areas? Ensuring the organization’s work is sustainable over time (note, I did not say the organization is sustainable; it’s about the work itself)? Short-term or emergency needs?

If the gift appears to be anonymous, you can make direct contact with the Philanthropic Advisor organization. The place to start is with the person who signed the cover letter or email with the gift received. Ask for a meeting to discuss how you can best keep them updated on your organization’s impact and learn their preferences for timing and delivery of reports.

I know of one gift officer that made contact three years ago and was invited to report on her organization to a team of advisors. Over time, this has grown to an annual meeting on results—and then intermittently during the year based on the desired schedule. The advisors represent multiple donors, and the giving has grown from $57k in FY23 to $1.3M in FY25.

Keep in mind, Philanthropic Advisors are working with donors with high net worth and significant giving potential. It’s likely that engagement here will increase your need for reporting—often at a very micro level. That is because it is their job to ensure the donor is getting the best “return” on their philanthropic investment.

I have seen a Relationship Fundraiser need to bring the CFO and the President in on an annual meeting where several donors were each giving in the seven-figure range.

Now that we're in the first quarter of 2026, take some time to look more deeply at what may appear to be a DAF to learn if some of your donors are using a Philanthropic Advisor. Then, make a plan to engage at that level.

Diana S. Frazier

Senior Client Experience Leader