A Donor Advised Fund
(DAF)
is a tax-advantaged charitable
giving account.
DAFs are often compared to a 401(k) for retirement savings or a Health Savings Account (HSA) for healthcare expenses.
Any person, couple, family–or even company–can open a DAF account at more than 1,000 providers around the country. DAFs have surged in popularity in recent years because they are incredibly effective at increasing giving capacity and streamlining philanthropy.
How
DAFs
Work
The power of DAFs lies in their simplicity.
Contribute
put cash, securities or more illiquid assets into a DAF account.
Invest
keep the balance invested in the market as you go.
Distribute
recommend cash gifts to 501(c)3 nonprofits any time.
Benefits to Donors
DAFs aren’t just useful for donors, they’re immensely valuable for nonprofits!
New research shows that when an existing supporter starts giving from their DAF for the first time, their annual donations to the same organization increase by 96%!
DAF giving is also the fastest growing segment of nonprofit fundraising, growing 214% between 2019 - 2023, the median change among participants in the DAF Fundraising Report. DAFs have been a critical source of financial stability during a challenging fundraising environment more broadly in recent year (the median growth rate of non-DAF fundraising between 2019-2023 in the study was only 1%).
DAFpay, a 3-click payment option for DAF giving, is also helping nonprofits tap into more DAF revenue than ever before. Giving donors an easy, embedded way to give from their DAF in your donation forms ensures you don’t lose potential DAF donors or get a smaller credit card gift from them.
DAFpay also allows donors to participate in online fundraising in real-time, capturing the gift amount & donor details immediately. This is what makes collective giving days like DAF day possible!
Interested in opening a DAF account?
Check our our DAF Day partners:
