There are an estimated 3.5 million donor-advised fund (DAF) accounts across the United States. Donors receive a tax deduction for the value of a contribution to a DAF account and can then recommend grants to qualified 501(c)(3) organizations.
Once DAF funds are invested, they grow tax-free until grants are issued to nonprofits.
DAF donors contribute cash, stocks, or other assets to a fund managed by sponsors. Among such sponsors are divisions of commercial financial institutions such as Fidelity Charitable, Vanguard Charitable, or DAFgiving360, local community foundations, and single-issue organizations focused on particular causes.
According to a report published by fundraising platform Chariot and consultancy K2D, DAF giving is one of the fastest-growing sources of nonprofit revenue. DAF revenue grew 75% from 2021 to 2025 among nonprofits that participated in the study, compared with only 12% growth for non-DAF revenue. DAF assets in the U.S. have reached $326.5 billion, offering unprecedented opportunities for nonprofits to access funding for technology capacity building. In 2024 alone, total DAF grants equaled $65 billion, according to public data.
Small and medium-sized nonprofits have much to gain by having DAFs embedded into the fundraising and development strategy. DAFs must not be treated as a standalone strategy; instead, nonprofit managers must activate practical, repeatable, and easy-to-use tools to engage DAF donors.
Weaving DAFs into all donor conversations and campaign moments via the following small steps is likely to increase donor engagement and retention, thereby increasing impact to your communities.
Build An Accessible DAF Pathway
Adding DAF giving instructions to your website, donation pages, campaign landing pages, emails, and donor stewardship materials help donors easily find your legal name, EIN, mailing address, and preferred payment platform. Nonprofit managers should embed DAF reminders in end-of-year appeals, GivingTuesday communications, gala follow-up emails, planned giving conversations, and board fundraising packets. These easy-to-implement steps can normalize DAF giving as one of several easy ways to support your organization.
Invest In A DAF Marketing Toolkit
Develop a set of donor-facing assets that can be reused across major donor proposals and board outreach. DAF Day campaigns can increase awareness among existing supporters and help cultivate new donors. Items that might be included in the toolkit are suggested email language, social media posts, website or landing page language, DAF giving instructions, a one-page case for support, sample social impact language, and language that board members could forward to engage their networks. See the DAF Day Marketing Toolkit as a guide.
Make A Plan
DAF-specific giving days or campaign moments help you to create urgency and visibility. Donors expect nonprofits to perform outreach on DAF Day. Framing a campaign around DAF Day and reporting back on what collective DAF giving made possible can be a powerful way to both engage and steward donors.
Exercise Data Discipline
Using data to facilitate relationship intelligence is critical for repeat gifts. Among nonprofits in the 2026 Chariot/K2D study, DAF donor retention was 13 percentage points more than non-DAF donor retention. Capturing prior DAF gifts and information on recurring sponsors, such as local wealth advisors or community foundations, as well as specifics on DAF donors, can help to personalize and tailor future asks.
Steward DAF Donors To Produce Meaningful Impact
Publishing a recognition article or issuing annual DAF donor awards are effective ways to show gratitude to donors. Writing blog posts or newsletter pieces or featuring DAF donors, fundholders, advisors, or community partners helps to keep donors engaged.
Taking steps to make DAF giving a visible, respected, and strategic way to invest in civil society is essential to the financial health of small and medium-sized nonprofits. Nonprofit leaders must take small steps to benefit from this important source of charitable giving to better serve those who need us most.
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Shaista Keating is vice president, development and global head of Emerging Corporate Alliances at TechSoup.org
