The Rise of DAF Fundraising and What It Means for Nonprofits
In a recent Chronicle of Philanthropy article, Eden Stiffman highlights a growing reality: more community foundations and financial institutions are actively fundraising for donor-advised funds (DAFs) (“The DAF Ask That Led Donors to Double Their Gifts,” July 9, 2025). What was once a quiet vehicle for donor convenience is now a competitive philanthropic battleground.
Community foundations, wealth managers, and donor services teams are encouraging individuals to set up and contribute to DAFs—sometimes with more energy than many nonprofits apply to their own appeals.
This trend has major implications. When a donor makes a gift into a DAF, the money leaves their bank account but doesn't necessarily reach a nonprofit anytime soon. And while the donation is technically “complete” for tax purposes, the donor's intent and involvement with specific causes might become less visible to the organizations they once supported directly.
Nonprofits are rightly concerned. DAFs introduce a layer of distance between donors and the charities they ultimately support. The giving process is intermediated. That can make it harder for fundraisers to identify high-capacity donors, maintain regular contact, and deliver the kind of tailored stewardship that builds long-term loyalty. In many cases, organizations don't even know who recommended a DAF grant if it arrives anonymously.
But this structural challenge isn’t an excuse for inaction—it’s a call to adapt.
Stiffman’s article outlines a striking example from The Public Theater in New York, where simply mentioning DAFs as a giving option in a fundraising campaign led to 23 DAF gifts—11 of which were five-figure contributions from donors who had never given at that level before.
The key wasn’t a new platform or costly strategy—it was a subtle but intentional shift in messaging. By acknowledging DAFs and prompting donors to use them, the organization unlocked more dollars, more quickly, with less friction.
Nonprofits need to follow this lead. If DAFs are here to stay—and the numbers suggest they are—then fundraisers must get more proactive and more informed.
That means:
Educating frontline staff on how DAFs work and how to recognize potential DAF donors.
Integrating DAF options into all gift channels—direct mail, online forms, event appeals, and major gift conversations.
Building relationships with community foundations and financial advisors, not as competitors but as potential partners.
Tracking and stewarding DAF gifts with as much care as traditional donations, even when donor names aren’t initially disclosed.
Yes, DAFs change the landscape. But the fundamental principle of fundraising remains unchanged: strong relationships drive giving. The onus is on nonprofits to maintain relevance in a system increasingly shaped by intermediaries. That requires effort—but as the Chronicle article shows, the payoff can be significant.
Nonprofits that adapt to the DAF era will continue to thrive. Those that ignore the shift risk losing access to billions of philanthropic dollars moving through this rapidly expanding channel.
