Does your organization have the potential to bring in more revenue from Donor-Advised Funds, but you’re not sure how to go about it? You’re not alone.
Many nonprofits we work with feel the same way. DAFs are one of the fastest growing giving vehicles out there, yet too many organizations are missing opportunities to connect with donors who use them.
At the end of 2020, there were more than $141 billion in undirected assets sitting in DAF accounts. And 2021 saw record-breaking grantmaking through DAFs. This growth hasn’t slowed down. According to FreeWill’s 2025 survey of nearly 500 nonprofits, 83% of organizations believe DAFs will be more important to their fundraising in 2025 than in previous years, and 71% say DAFs make it easier for donors to give complex gifts.
With that much potential on the table, the question is: how can your organization start making DAFs work for you?
What You Need to Know About DAFs
Here’s a quick primer.
Donor-Advised Funds are accounts donors set up through sponsoring organizations that already have 501(c)(3) status. Donors contribute assets to their DAF account, receive the immediate tax benefit, and then recommend grants from the account over time. The sponsor manages the administration—things like recordkeeping, sub-accounting, and tax reporting—while the donor retains advisory privileges.
Here are a few things that might surprise you:
(Source: National Philanthropic Trust, 2024 DAF Report)
In other words: this is not just an elite giving tool. It’s becoming one of the most common non-cash vehicles donors use today—surpassing even gifts of stock or qualified charitable distributions.
5 Steps to Succeed with DAFs
If you’re ready to start tapping into this opportunity, here are some rules of thumb to guide you:
1. Communicate how you credit DAF grants.
Donors want to know how you recognize these gifts. Make sure you have clear policies on receipting, acknowledgment, and crediting so they feel seen and valued.
2. Include DAF language in your solicitations.
This is a simple but powerful change. Add a line to your appeals that reminds donors they can give through a Donor-Advised Fund. Don’t assume they’ll make the connection on their own.
3. Cultivate DAF donors for planned gifts.
DAF accounts often signal donors who are serious about their giving. That’s an indicator they may also be open to conversations about legacy giving.
4. Engage the family of DAF donors.
These accounts often involve family members. When you build relationships with spouses or children, you deepen connections and extend donor engagement across generations.
5. Partner with a DAF sponsor for complex gift administration.
If a donor is considering a non-cash or complex gift, partnering with the sponsor can make the process smooth and position you as a capable, trusted partner.
Why This Matters for Your Mission
Here’s the bottom line: DAF donors are the same donors you already cultivate. The difference is, the money is already given—it’s sitting there waiting to be directed. If you’re not talking with your donors about this option, you’re leaving opportunity (and impact) on the table.
And here’s something else to consider. Donors often forget they even have DAFs! A gentle reminder— “Did you know you can recommend a gift from your DAF?”—can spark giving that might not have happened otherwise.
This isn’t about creating a complicated new program. It’s about weaving DAF awareness into the relationship-based fundraising you’re already doing:
Don’t Miss the Opportunity
The FreeWill survey found that 64% of non-profits are now actively soliciting or promoting DAFs, up from 58% in 2023. Of those, 99% reported receiving at least one DAF gift in 2024. That tells me two things: DAFs are here to stay, and organizations that embrace them are already seeing results.
With billions in DAF assets still undesignated, your donors are looking for meaningful ways to use them. By recognizing their investment, engaging them personally, and inviting them into transformational opportunities, you honor their giving and deepen their relationship with your mission.
Now is the time to start. The money is already there. Will your organization be ready to receive it?