Playbooks

Understanding and Tapping Into Donor-Advised Funds

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January 7, 2025 | Read Time: 1 minute

Money continues to flow into donor-advised funds at a record-setting pace. DAFs held more than $361 billion in 2024 and funneled nearly $65 billion to charities that year, according to the Annual DAF Report 2025.

These funds have been a mainstay of community foundations for generations, but in the past decade or so their popularity has exploded. That surge has been driven in large part by financial-services companies entering the field and spinning off charitable arms to manage them.

Individuals who open these accounts, which are invested and may continue to increase in value, can take a tax deduction the same year they make a contribution. But they can wait as long as they wish to direct the money to charity.

Critics say DAFs delay or prevent money from reaching charities that sorely need support. The funds also make it more difficult for fundraisers to build ties with donors.

Once a donor transfers money into a fund, the sponsoring organization becomes the legal owner and the legal donor. When a gift is made from the account, it can be difficult to determine who directed the donation. Some account holders choose to remain anonymous when making a gift, leaving nonprofits no way to thank them or develop a relationship with them.

To help you get a better handle on DAFs and include them in your fundraising, we’ve gathered tools and advice articles that explain how they work, how some groups are securing gifts from them, and how to connect with individuals who own these funds.

Editor’s note: Chronicle playbooks are updated on an ongoing basis as new advice becomes available.

Caught in a Web of DAF Transfers

Caught in a Web of DAF Transfers

Donors get a tax deduction for donor-advised fund contributions, but billions of payouts each year are simply recycled to other DAF providers

4 Strategies Fundraisers Can Use to Boost DAF Donations

4 Strategies Fundraisers Can Use to Boost DAF Donations

One piece of advice: Tap into your inner Nancy Drew.

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7 Smart Tips to Reach DAF Donors — and Raise More

Make it easy for these valuable supporters to give, and more advice from experts.

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Looking for DAF Donors? Here Are 4 Keys to St. Jude’s Success

The fundraising powerhouse uses every opportunity to let people know it accepts gifts from DAFs, and it tracks data carefully so it can make tailored…

9 Ways to Raise More From Donor-Advised Funds

9 Ways to Raise More From Donor-Advised Funds

The number of donors using DAFs is growing fast, but it can be hard to find and cultivate them. Here’s advice from several experts.

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Getting Anonymous DAF Donations? 7 Things to Do

Fundraisers and experts share their secrets for relationships with mystery donors.

8 Proven Ways to Engage Wealth Advisers — and Raise More From DAFs

8 Proven Ways to Engage Wealth Advisers — and Raise More From DAFs

What works — and what doesn’t — when building ties with financial professionals to attract DAF gifts.

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Gifts From DAFs Are Nearly 10% of All Giving. How Nonprofits Are Trying to Court Those Donors

DAFs remain controversial, but their size and influence continue to grow. Gifts from the accounts totaled $52 billion in 2022.

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Tips for Getting Close to Those Who Manage and Open Donor-Advised Funds

Lots of people are in the orbit of DAF donors ― program officers at community foundations, professionals at other sponsoring organizations, legal and wealth advisers….

How to Land Donor-Advised Fund Gifts

How to Land Donor-Advised Fund Gifts

The rules keep fundraisers in the dark, but some groups are breaking through to donors.

Inside One Group’s Fundraising Windfall From Donor-Advised Funds

Inside One Group’s Fundraising Windfall From Donor-Advised Funds

Why the Pan-Mass Challenge is the only regional nonprofit among the top recipients of Fidelity Charitable donations.

Working With Donor-Advised Funds: The Basics

Donor-advised funds continue to boom. Here are answers to some frequently asked questions about receiving donations from the accounts.

An Introduction to Donor-Advised-Fund Terms and Concepts

Confused about accepting gifts from donor-advised funds? Here’s a primer on this fast-growing way to give.