There is no doubt that the use of donor-advised funds (DAFs) is growing at a rate that is outpacing other avenues of giving. According to data from the DAF Research Collaborative (DAFRC), total assets in DAFs reached $327.87 billion during fiscal year 2024, a 27.9% increase from the previous year. Preliminary data for 2025 suggests this trend accelerated further.
Contributions into DAFs reached a record $90.57 billion during 2024, a 38.6% year-over-year jump. Grantmaking via DAFs was $64.6 billion during 2024, reflecting an increase of 18%.
That’s a lot of money that still seems to be mystery-shrouded to many fundraisers. A new 54-page report from agencies Chariot and K2D Strategies, the “2026 DAF Fundraising Report,” provides data and insights into how fundraisers can boost revenue from the vehicle.
“Among the most powerful data points this year is the sheer volume of DAFs gift that come in less than $1,000, the traditional threshold for mid/major gifts for most organizations,” according to Karin Kirchoff, founder and president of K2D Strategies. “Two-thirds of gifts are less than $1,000. This is consistent with last year’s findings and underscores the importance of incorporating DAF messaging into mass market channels such as mail, email, Short Message Service (SMS), etc.,” she said.
Median DAF revenue growth from 2021 to 2025 increased 75% among nonprofit participants in the study, while median non-DAF revenue growth was 9%, according to the report’s authors.
“There’s a persistent concern in the industry that DAFs might lead to decreased support of operating nonprofits. This data shows that there is substantial benefit to a nonprofit when their current supporters start using a DAF instead of other means of giving. Nearly half of existing donors who switched to giving via DAF more than doubled their annual giving,” said Kirchoff.
The authors cited The International Rescue Committee, as an example of DAF revenue growth. IRC treats DAFs as an organization-wide priority. IRC’s two most distinctive moves are how they organize internally and how they educate donors. Authors cited Kate Rhodes, senior officer, Strategic Philanthropy, at the IRC: “DAFs are not sitting in one team at IRC. The cross-departmental partnership, paired with educating donors across every channel, is what is unlocking the gifts we are seeing.”
Grants were fairly evenly distributed throughout the year because the grants from a DAF are not driven by tax timing considerations. There is still some spike during the fourth quarter, especially December, given that is when nonprofits are doing the most solicitation and fundholders are contributing to their DAF, which keeps it top of mind.
The elevated volume in January, according to the authors, is at least partially attributable to the fact that many gifts made in December are not received and processed until January. There’s also an argument that DAF donors have recently funded their accounts in December and are ready to use it come January.
It’s all about the data when it comes to receiving and recording DAFs. There are five key contributors to DAF data challenges:
* Limited Data Provided: Most DAF gifts aren’t anonymous, but they arrive with limited information. A “fund name” is often all you get, and it doesn’t always correlate to the donor’s name. Email and phone are almost never included, making tracking and engagement hard.
* No Business Rules: DAFs are a relatively new payment option for most organizations, so few have documented processes for DAF donor management, often lumping DAFs with other gift types such as Qualified Charitable Distributions (QCDs). Every DAF sponsor sends gifts and data differently (checks vs. electronic transfers, email vs. PDF vs. digital file), which makes standardization hard.
* Pitfalls Of Manual Entry: Most DAF gifts are manually entered into fundraising platforms because they arrive as checks or bank transfers without source codes or scanlines. Manual entry is prone to significant human error.
* Database Limitations: Most fundraising platforms were designed before DAF giving was a significant revenue driver, so they’re rarely tailored to DAF gift tracking. The unique fields needed for DAF data often don’t exist out of the box.
* Siloed Ownership: DAF management isn’t consistent across organizations. It might live under major giving, planned giving, direct response, or even finance. Without documented processes, staff turnover and disparate handling yield lapses and inconsistencies in DAF data.
There are methods of getting the idea of a DAF grant into the mind of a donor. According to the authors, fundraisers should mention an organization’s eligibility for DAF giving, include DAF as a reply device option, add a QR code or URL to a DAF page or campaign form. Email-responsive DAF donors are digital. They complete the gift on their computer. Bring them to your domain instead.
Fundraisers should simultaneously highlight DAF giving across direct marketing, email, SMS, ads, telemarketing to create a DAF “echo chamber” for existing and target look-alike audiences.
Include mentions of DAFs and have a specific link to a DAF page or form near any giving call to action. Many fundraisers mention this in their signature block or in the footer of email templates.
Postcard can work. It’s a lower cost option to target a wider audience with DAF messaging and it can also be paired with email and/or SMS.
To receive a full copy of the report, click here.
To hear a webinar on the data results, click here.
