Nonprofits are always looking for reliable ways to sustain support, and donor-advised funds (DAFs) have emerged as one of the most powerful tools in philanthropy. For donors, they provide flexibility and tax benefits. For nonprofits, they open the door to larger, more consistent funding streams. When paired with platforms like Giveable, DAFs can help organizations not only raise money but also build lasting relationships with donors.

What Are Donor-Advised Funds?

A donor-advised fund is a charitable giving account offered by a public charity, financial institution, or community foundation. Donors contribute assets—cash, stocks, or other investments—into the fund and receive immediate tax benefits. They can then recommend grants over time to nonprofits of their choice.

This model allows donors to separate the decision of when to give from the actual act of giving. For nonprofits, this means potential access to funds that have already been set aside for charitable purposes.

Why DAFs Are Growing

The popularity of donor-advised funds has grown significantly in recent years. According to the National Philanthropic Trust, contributions to DAFs in the United States reached over $72 billion in 2021, and grants from DAFs to nonprofits exceeded $45 billion. This trend shows how deeply embedded DAFs have become in the fundraising landscape.

Donors are attracted to DAFs because they provide:

• Immediate tax deductions.
• Flexibility in choosing when and where to give.
• Simplicity in managing charitable contributions.

For nonprofits, the growing presence of DAFs represents both a challenge and an opportunity.

Challenges for Nonprofits

While DAFs offer incredible potential, nonprofits sometimes struggle with visibility. Because the fund is held by a sponsoring organization, nonprofits may not always know who their DAF donors are or when a grant will arrive. This can create gaps in communication and stewardship.

Nonprofits that succeed with DAFs are those that actively educate donors about giving through these funds, maintain clear communication, and offer transparent impact reporting.

Examples of DAFs in Action

• Community Foundations: Many local nonprofits receive steady funding through grants recommended by donors with DAFs at community foundations. This funding often supports education, housing, or food security projects.
• University Endowments: Alumni often use DAFs to support scholarships or research programs, allowing them to structure gifts over several years.
• Faith-Based Organizations: Churches and ministries benefit when donors channel contributions through DAFs, often increasing the size and consistency of gifts.

These examples show how DAFs not only enable generosity but also create stability for organizations.

How Giveable Complements DAF Giving

Giveable enhances the benefits of donor-advised funds by helping nonprofits manage relationships, increase transparency, and inspire donors to take action.

Benefits of Giveable with DAFs:

• Personalized donor engagement: Keeps DAF donors informed about specific projects they can support.
• Impact storytelling: Shows donors the real-world results of their recommended grants, building stronger trust.
• Recurring and blended giving: Encourages donors to combine DAF giving with smaller recurring gifts, sustaining nonprofits beyond one-time grants.
• Transparency and reporting: Helps nonprofits provide the clarity donors expect, reducing hesitation to recommend more grants.
• Donor confidence: By making it simple and transparent, Giveable strengthens donor trust even during volatile market conditions.

This combination turns DAFs from a passive financial tool into an active fundraising driver.

Best Practices for Fundraising with DAFs

1. Educate your donors – Many supporters may not realize they can give through a DAF.
2. Promote DAF giving options – Add simple instructions to your website or fundraising appeals.
3. Show impact – Use platforms like Giveable to demonstrate exactly how gifts are used.
4. Recognize DAF donors – Even if you cannot always see the donor behind the fund, send gratitude through the sponsoring organization.
5. Encourage blended giving – Pair DAFs with other giving strategies to ensure consistent fundraising.

A Few More Valuable Insights

Donor-advised funds are reshaping philanthropy and creating new opportunities for nonprofits to sustain their work. By understanding how DAFs function and combining them with platforms like Giveable, nonprofits can unlock new levels of support and trust.

Do not wait for donor hesitation to slow down your fundraising. Leverage DAFs and Giveable together to create sustainable, impactful fundraising strategies.