Written By: Travers J. Oliver, CNP, Head of Philanthropic Services, Founders Pledge

In the fast-paced world of philanthropy, Donor-Advised Funds (DAFs) have become a titan of charitable giving. With over $250 billion in assets and climbing, DAFs are not just a trend, but a critical revenue stream for nonprofits. Despite this, many nonprofits still struggle to connect with this pool of committed donors. If you’re a nonprofit leader, fundraiser, or development professional, it’s time to best position your organization to seamlessly accept DAF grants. Below you’ll find an actionable blueprint to make your organization immediately visible and accessible to DAFs.

What is a DAF?

Think of a DAF as a personal charitable savings account. An individual, family, or corporation contributes to a fund managed by a sponsoring public charity and receives an immediate tax deduction. The money is contributed to the account, grows tax-free, and the donor then recommends grants to their favorite nonprofits over time. While the sponsoring organization is the legal donor of the grant, the donor holds advisory privileges over where the grants go.

Why DAFs Are a Game-Changer for Your Nonprofit

Focusing on DAFs isn’t just about diversification; it’s about securing a stronger financial future:

  • Growing Distributions: DAF disbursed over $50 billion to nonprofits in 2023 alone.
  • Strategic Dollars: DAF donors tend to be more strategic givers, often leading to larger and more consistent gifts year after year.
  • Access to Major Donors: Many high-net-worth individuals rely on DAFs. Attracting these gifts opens the door to deeper engagement and long-term major giving conversations.

6 Essential Steps to Become DAF-Ready

1. Dedicate Real Estate to DAF Giving on Your Website

Your website is your digital front door.

  • Create a prominent, dedicated page that concisely explains the DAF process and clearly directs donors.
  • Use an unmistakable Call-to-Action button: “Recommend a Grant from Your Donor Advised Fund.”
  • Integrate a DAF button (like DAFpay or similar tools). These third-party integrations allow donors from major sponsors (Fidelity, Founders Pledge, etc.) to initiate a grant without ever leaving your site.

2. Don’t Make Them Hunt: Showcase Your Information

Grant processing often hits a wall due to simple administrative errors. Clarity prevents delay.

  • Ensure your legal name and EIN (Employer Identification Number) are published on your website and “Ways to Give” pages.
  • Make sure your official mailing address and a contact email are easy to locate. This basic transparency helps DAF sponsors quickly confirm your 501(c)(3) status and process the gift.

3. Be Found: Register and Update Across Key Platforms

You need to be searchable where DAFs are looking.

  • Verify your profilewith Candid’s GuideStar and ensure your details are up to date.
  • Check and maintain an accurate listing on popular third-party philanthropic platforms like Chariot or Every.org.

4. Turn Up the Volume: Educate Your Donor Base

A staggering number of donors have DAFs but don’t realize they can easily recommend grants to your organization.

  • Use your email newsletters, blog, and social media to demystify DAFs. Explain the ‘why’ and the ‘how’ in simple, benefit-driven language.
  • Weave powerful statements into your appeals: “If you hold a donor-advised fund, recommending a grant is the fastest, most powerful way to fuel our mission today.”

5. Master the Art of Thoughtful Acknowledgment

While the grant legally comes from the sponsoring organization, the generosity comes from the donor.

  • Send a personalized thank-you note to the donor (if their identity is shared) that focuses on the impact of their support.
  • Critical Note: Avoid any language that suggests a tax deduction, as the donor already received this when they contributed to their fund. Your acknowledgment should be pure thanks and impact reporting.

6. Segment and Steward Your DAF Donors

Don’t let these committed supporters disappear into your general database.

  • Create a distinct segment in your CRM for DAF contributors. These donors are often among your most strategic supporters, but they may not appear on your typical individual giving reports.
  • Use this segment for tailored impact communications, invitations to high-level events, and eventually, to gently introduce legacy or planned giving conversations.

The Bottom Line

DAFs are no longer the ‘next big thing,’ they are simply modern philanthropy. To claim your share of this immense funding pool, you must shift your approach from passive acceptance to proactive accessibility. By taking these strategic steps from refining your website to building key relationships, your nonprofit will be well-positioned to harness the deep commitment and growing generosity of DAF donors for years to come.

About the Author: Travers J. Oliver, CNP

Travers Oliver is the Head of Philanthropic Services at Founders Pledge, a global nonprofit that operates in the U.S., U.K., and Germany. Founders Pledge and its members have pledged over $10 billion to charity and donated more than $1 billion to the charitable sector. Prior to joining Founders Pledge, Travers worked at National Philanthropic Trust, where he served on a team that moved over $13 billion to the charitable sector.

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